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