What Is Trading and Demat Account & Its Purpose?Posted by Shrikant Sharma on July 19th, 2018 The account is designed in such a way that it holds the statement of gross profit and/or gross loss that a company or a business enterprise acquires. The net profit or the net loss of the firm is calculated from the profit and loss account. On the other hand a trading account just gives the gross profit or gross loss along with the net sales and the rate of profit sharing ratio. The account which is particularly designed for holding the statement of shares purchased with the help of an electronic device or in the dematerialized format. It keeps an overview of the financial instruments which includes government securities, mutual funds, exchange trade funds, shares and bonds. Understanding trading and demat account The gross profit of a business enterprise is that source from which the expenses are met. The gross profit is a very vital aspect. It is that summation of money which is adequate to meet the success of all the expenses that is incurred by the business enterprise.
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