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JC Trading Account
Jc Trading Account measuring business profitability
Question | Answer |
---|---|
The Trading Account | records all the details about the goods or services that were bought and sold by a business during the previous year. |
The Trading period | refers to the length of time the final accounts are prepared for. |
Sales | The value of goods sold. |
Purchases | The cost of goods/materials puirchased. |
Sales Returns (Returns In) | The value of goods that were returned to the firm. |
Purchases Returns (Returns Out) | The costs of goods purchased were returned by the firm. |
Opening Stock | The cost of good held in stock at the start of the period. |
Closing Stock | The cost of goods held in stock at the end of the period. |
Carriage Inwards | Transport costs of bringing goods/material into the factory. |
Import / Custom Duties | Any taxes the firm had to pay on goods they purchased or imported from certain other countries. |
Gross Profit/Loss | it is the difference between the total amount of sales during the period and the total amount it cost the firm to purchase and prepare these good for sale. |