The trading account is to a sole trader what income and expenditure account is to a?

The trading account is to a sole trader what income and expenditure account is to a non-profit making organization. The trading account shows the gross profit earned or loss incurred from buying and selling goods during an accounting period. It includes the cost of goods sold and the sales revenue. It is prepared by a trading organization like a sole trader, partnership, or a company that engages in buying and selling goods. Similarly, the income and expenditure account is used by non-profit organizations to record their income and expenses. It is used to calculate the surplus or deficit of the organization's operations for the accounting period. It includes all the revenue and expenses incurred by the organization in that period, including donations, grants, and other sources of income.