Which Items are include in the debit side of the Trading Account?

Which Items are include in the debit side of the Trading Account?

Items which are include in the debit side of the trading account

Trading means buying and selling. The trading account demonstrates the effect of buying and selling of goods. The primary step of final account is trading account. It is nominal account which is prepared at the end of accounting year. Trading account helps to find out gross earnings or gross loss during the accounting period.

Opening Stock:

Opening stock consists of raw materials, work in progress and finished goods depending upon the nature of business. In merchandising business, the opening stock consists of finished goods. In manufacturing concern, opening stock consists of raw materials.


Purchase includes both credit purchase and cash purchase. Purchase is available in trial balance.

Purchase Returns

Purchase returns are appears in the credit side of trial balance. Purchase returns may be shown by deduction from purchases.

Direct Expenses

Direct expenses mean all the expenses which are directly attributable to the purchase of goods. These are some examples of direct expenses.

  • Manufacturing expenses.
  • Commission on purchase.
  • Direct labour or direct wages.
  • Freight on purchase.
  • Carriage on purchase.
  • Fuel, power and lighting expenses.
  • Packing charges.

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