These account the money in (revenue) and out (costs) of the business as a result of the business' 'trading' i.e.
This begins with the Gross Profit and adds to it any additional costs and revenues, as well as overheads. A Trading account is a declaration prepared by a firm to determine its trading results for the accounting year. Accounting Accounting has evolved and emerged within response to the social & economic requirement of the society.

These additional costs and revenues may be in the nature of additional operating, administrative, selling and distribution expenses.A  This account also comprises expenses which are as of any other actions not directly related to trading (non-operating).
It takes into account a variety of trading everyday expenditure (regularly all direct expenses) and incomes. In terms of a developed concern, it will organize an additional statement called a manufacturing account.
A manufacturing account is arranged by a producer to ascertain the cost of goods manufactured through the existing accounting year.

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