At the end of trading period, cost of goods sold is debited to the trading account while cost of services is debited to the

At the end of a trading period, a business calculates its profit or loss for the period. The cost of goods sold represents the cost of goods that have been sold during the period, and it is calculated by subtracting the value of the ending inventory from the sum of the cost of goods available for sale. This cost of goods sold is debited to the trading account. On the other hand, the cost of services represents the cost of services that have been provided by the business during the period, and it is usually charged directly to the profit and loss account. This is because the cost of services is not related to the cost of goods sold, which is the focus of the trading account. Therefore, the cost of services is not debited to the trading account but rather to the profit and loss account.