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A Trading Account is a Final and financial statement drawn by a firm at the end of their accounting period showing the relationship that existed between their Sales volume and Purchases and the Gross profit or loss arrived. When Net Sales exceeds the Cost of Sales then there is Gross Profit. However, if the Cost of Sales exceeds the Net Sale(Sales less Return Inwards) then there is Gross loss.
A Manufacturing Account is part of the Final accounts drawn by a manufacturing entity before drawing the Trading Account. Since the firm is engaged in the manufacturing or converting of raw materials to finished goods,they express the monetary value of Prime Cost(Direct Materials + Direct Labour + Direct Expense) and Overheads( Sum of all Indirect cost) to determine the cost of Production. The manufacturing account is used to generate the Total Cost which is the sum of the cost of production, Selling and distribution overhead, production overhead and Administration overheads
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What else can I help you with?
Difference between trading account and manufacturin account?
Manufacturing account, on the other hand, is a financial statement which shows production costs
Income statement of manufacturing organization?
Income statement of manufacturing organization is same as for trading company with little difference in manufacturing company there is separate manufacturing account is also prepared.
What financial statement is prepared first in accounting?
for a manufacturing concern it will be a manufacturing account and for a non manufacturing concern it will be a trading account or a profit and loss account or income and expenditure account.
Difference between trading account manufacturing account?
A Trading Account is a Final and financial statement drawn by a firm at the end of their accounting period showing the relationship that existed between their Sales volume and Purchases and the Gross profit or loss arrived. When Net Sales exceeds the Cost of Sales then there is Gross Profit. However, if the Cost of Sales exceeds the Net Sale(Sales less Return Inwards) then there is Gross loss. A Manufacturing Account is part of the Final accounts drawn by a manufacturing entity before drawing the Trading Account. Since the firm is engaged in the manufacturing or converting of raw materials to finished goods,they express the monetary value of Prime Cost(Direct Materials + Direct Labour + Direct Expense) and Overheads( Sum of all Indirect cost) to determine the cost of Production.
What is the difference between trading a demo account and trading a live account?
Basically they are the thing but with one huge difference - while trading a LIVE account emotions gets in the way and interfere with the trader's decisions. That's the main reason why a lot of traders who done well trading the demo account can't get the same results with a live account. Greed and fear are usually what make traders lose their mind and eventually their money.
What is the difference between accounts only and accounts with inventory in tally?
account only particular ledger ,account with inventory deals with item and groups of item In account only we cannot deals with stock entry ,But in accounts with inventory we can deal with stock entry . Account only deals with firm.But Accounts with inventory deals with manufacturing and trading.
What is difference between day trading and intraday trading?
Day trading is the act of trading intraday. There really isn't any difference. Only different terminologies used by different people.
Difference between trading accounts and non trading account?
a company who is engaged in the business of purchase and sale of any product then they will prepare trading account in order to know their trading profit.but the company who is not engaged in the business of purchase and sale like service providing company, they are providing their services only then they will prepare on P/L A/c not trading account.I have no idea to what the above statements are referring to, but in relation to runescape, trading accounts would be in itself, trading accounts (switching accounts with another player). Non-trading accounts I would assume to be an account banned from trading with other players.
What is the difference between trading business and service business?
Trading businesses and service businesses
What is the difference between the ETRADE net account value and the cash available in my account?
The ETRADE net account value is the total value of your account including all investments and cash, while the cash available in your account is the amount of money you can withdraw or use for trading without selling any investments.
What is the difference between margin trading and credit given by stock brokers?
Credit given by stockbrokers IS margin trading.
What does the day trading term arbitrage trading mean?
Arbitrage trading is trading that takes advantage of a difference in price between two or more different markets, to make a profit equal to the difference in the market prices. Arbitrage trading is useful in banks and brokerage firms.
