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Why is a Trading Account prepared? - Commercial Studies

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प्रश्न

Why is a Trading Account prepared?

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उत्तर

The Trading Account is established for the following reasons:

  1. It provides information about gross profit. A trading company's success can be measured by its percentage of gross earnings to sales.
  2. The gross profit-to-sales ratio allows traders to compare their performance over time.
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अध्याय 7: Final Accounts of Sole Proprietorship - EXERCISES [पृष्ठ १०४]

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गोयल ब्रदर्स प्रकाशन Commercial Studies [English] Class 10 ICSE
अध्याय 7 Final Accounts of Sole Proprietorship
EXERCISES | Q 2. | पृष्ठ १०४
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