What is the purpose of Trading, Profit and Loss Account and Balance Sheet?

Ans. Every businessman is interested to know the operating results and ascertain the financial
position of the firm he runs for monitoring, from time to time. Trading Account shows the
gross profit, while Profit and Loss Account shows the net profit. Final results of business,
profit or loss, are known through Profit and Loss Account.
Balance sheet exhibits the final financial position of the organization.