In these report, generally calculation being to get gross profit and gross loss for further calculation of net profit and loss for organization or firm in accounting reports.
In this report automatically calculated profit made strictly based on trading activities (like buying and selling).
In the trading account the cost of goods sold is subtracted from Net Sales for the period to calculate Gross Profit.
Cost of Goods Sold - value of the goods sold at cost.
Net Sales - actual sales made after all adjustments have been made for goods returned.
Gross Profit - it is excess of Net Sales over Cost of Goods Sold.
Gross Loss - it is the excess of Cost of goods sold over Net Sales.
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