Importance Of Trading Account

It is very important to find out gross profit or loss for the business to know whether purchasing, manufacturing and sales are sufficient for earning or not.The main objectives or important of trading account are as follows.

1.Trading account helps to know gross profit or loss.

2.Trading account provides information about the direct expenses.

3.Trading account provides safety against possibilities of loss.

4.Trading account helps in comparison of closing stock with last year's stock