Confusion between trading and profit and loss account

Sir/Mam,
I am a student of class 11. I am facing problem with trading and profit and loss account. I am getting confused between the accounts name that are to be placed in trading and what are to be placed in profit and loss accounts. I would be obliged if you make it simple to me.
Thankyou.
Replies (4)
Quick Summary
This discussion clarifies the difference between a Trading Account and a Profit & Loss Account for a Class 11 student. The Trading Account deals with direct income and expenses directly related to the core business activities, such as opening stock, purchases, sales, and manufacturing expenses. The Profit & Loss Account, on the other hand, covers indirect expenses and incomes that arise from business operations but are not directly tied to production or sales, like salaries, office expenses, and commission received.

Trading A/c
Dr. side record
opening stock if any, all purchases, purchase return, direct exp
cr. side records
all sales, sales return, direct income, closing stock and loss of goods destroyed

balance of which will be Gp or GLoss

Trading a/c is directly related to core business activity eg. exp. directly related to main business activity ( exp such as mfg exp., direct wages, )


P&L
in short it includes all revenue expenditures and income in process of business which is not directly related to main activity.
it includes Indirect exp. on debit side and indirect income on cr. side
Dr. side
i. e. salary, remunerations, office exp., discount given, staff exp., stationary exp., depriciation exp., loss on asset sale PF exp. etc all revenue exp.
Cr. side
Indirect income, commission recd, discount recd, profit on sale of assets etc.

from P&L u get Net profit or Net loss
Sir this is only the prblm
I am getting confused into the accounts
For more info on this search out on you tube.....

hope it helps you.
Ok sir

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