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The Debit Balance of a Trading Account. - Book Keeping and Accountancy

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Question

The debit balance of a trading account.

Solution

Gross Loss

ExplanationDebit balance of Trading Account implies gross loss incurred as a result of the trading activities of the business. If the amount of purchases and direct expenses exceeds the amount of sales and stock at the end, then the difference amount is termed as a gross loss.

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Adjustments - Unrecorded Purchases and Sales
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2013-2014 (March)
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