A trading account is prepared to disclose the
- net profile or loss for the year
-
gross profit or loss for the year
- accumulated fund for the year
- gross profit on manufacturing
The correct answer is: B
Explanation
The purpose of the profit and loss account is to: Show whether a business has made a PROFIT or LOSS over a financial year. It describe how the profit or loss arose – e.g. categorizing costs between “cost of sales” and operating costs.