Trading Accounts - JSS3 Business studies Lesson Note
A trading account records the direct expenses and revenues related to the core operations of a business. It typically includes:
- Sales: Revenue generated from selling goods/services.
- Opening Stock: Value of inventory at the beginning of the accounting period.
- Purchases: Cost of acquiring goods for resale.
- Closing Stock: Value of inventory at the end of the accounting period.
Example of a Trading Account:
|
Particulars |
Amount (₦) |
|
Sales |
XXXX |
|
Opening Stock |
XXXX |
|
Purchases |
XXXX |
|
Less: Closing Stock |
(XXXX) |
|
Total Cost of Goods Sold |
XXXX |
|
Gross Profit |
XXXX |