Items included in the credit side of the trading account

Followings are the items which are included in the credit side of the trading account.

1.Sales
Both cash sales and credit sales are included in trading account.

2.Sales returns
Sales returns must be deducted from total sales and to be shown in the credit side of trading account. Sales returns are the sold goods which are returned from customers.

3.Closing stock
Closing stock means the value of goods which are remain unsold in a particular accounting period. Closing sock may be in the form of raw materials ,. work in progress or finished goods. Closing stock is valued at cost or market price.