If the debit side of trading account is more than the credit side what does it signify ........

General Accounting Principles Accounting cycles

If the debit side of trading account is more than the credit side what does it signify

Gross profit

Gross loss

Cost of goods sold

None of the above

If the debit side is more than the credit side it means that there were more expenses this year than the incomes. Thus, there is a gross loss

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trading account will be treated as nominal account or real account? pls inform.

NIHARIKA WALIA

trading account is a nominal account

please explain this question

NIHARIKA WALIA

dr side of trading account signifies expenses while credit side signifies income so when expenses are more it would result in losses