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Answer Posted / jyoti chaudhary
P&L account is prepared to know the exact profit and loss
of the company by taking into consideration the Gross
profit and finding out the Net profit of the company which
is further taken into consideration to prepare the Balance
Sheet which shows the position of the company in front of
its creditors, debtors and investors.
Trading Account is prepared to know the Gross
Profit.Trading Account is prepared by taking all the
factory or production related expenses.
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