The item on the credit side of the trading account is the?

Assessment: JAMB UTME - Principles of Accounts - 2011 Subject: Financial Accounting

Question 1 Report

The item on the credit side of the trading account is the?
Answer Details
The item on the credit side of the trading account is the "sales". The trading account is a financial statement that shows the gross profit of a business by comparing the revenue generated from sales to the cost of goods sold. The credit side of the trading account shows the income earned by the business, which is primarily derived from sales made during the period. Therefore, sales are credited in the trading account to reflect the revenue earned from the sale of goods or services.
Read lesson note on Nature And Significance Of Accounting (JAMB)
Read lesson note on Principles Of Double Entry (JAMB)
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