how to find gross loss?
Hi Leena,
When Debit side of the Trading Account exceeds the Credit side of the Trading Account, then there is Gross Loss.
Algebraically, it will be as follows.
Gross Loss = (Opening Stock + Purchases + Direct Expenses) - (Sales + Closing Stock)
I hope this answers your query.
Keep Posting!!
When Debit side of the Trading Account exceeds the Credit side of the Trading Account, then there is Gross Loss.
Algebraically, it will be as follows.
Gross Loss = (Opening Stock + Purchases + Direct Expenses) - (Sales + Closing Stock)
I hope this answers your query.
Keep Posting!!