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