What are the items in trading , profit and loss and balance sheet ?

I have to start learning profit and loss and balance sheet from next class on wards .

Can someone tell me what are all the items in trading , profit and loss and balance sheet are ?

Do we use the trial balance to prepare the trading , profit and loss and balance sheet ?

Replies (4)
Quick Summary
This discussion clarifies the key components of Trading, Profit & Loss (P&L), and Balance Sheet accounts. It explains that the Trading account includes items before operating profit like sales, purchases, inventory, and direct expenses. The P&L account covers indirect expenses and incomes, while the Balance Sheet details assets, liabilities, and capital. The conversation also confirms that a trial balance is used to prepare these financial statements.

Trading account should be stopped in accounts. Is your text book still trading accounting? It’s Indas now a days. Nothing big about trading account- all items which come before the operating profit EBIT are called as trading account. 

They include:

Sales and returns

Purchases and returns

Inventory opening and closing

Wages and all overheads

Depreciation and other expenses will come under pl

Thanks for the reply ...

 

So these are all the items in it ,

Trading account ,

Direct expenses

opening stock

closing stock

purchases

purchase returns

sales

sales returns

Profit and loss account ,

Indirect expenses

Indirect incomes

Balance sheet Account ,

Asset

liability

capital

 

:)

Yes! This is sophisticated enough 

OK ,

 

Thanks a lot for the replies

 

:)

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