English

The difference of the two sides of trading account is either net profit or net loss.

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Question

The difference of the two sides of trading account is either net profit or net loss.

Options

  • True

  • False

MCQ
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Solution

False

Explanation:

The Trading Account shows gross profit or gross loss (the difference between sales and cost of goods sold and direct expenses). Net profit or net loss is found in the Profit & Loss Account after indirect incomes and expenses are adjusted.

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Chapter 7: Final Accounts of Sole Proprietorship - EXERCISES [Page 118]

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Goyal Brothers Prakashan Commercial Studies [English] Class 10 ICSE
Chapter 7 Final Accounts of Sole Proprietorship
EXERCISES | Q 33. | Page 118
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