ASSERTION: Trading Account may be defined as an account which is prepared to ascertain the gross profit or gross loss of a business concern for a given time period. REASONING: Trading Account contains items of capital nature only.

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KollegeApply · Accepted Answer

A is true, but R is false. Explanation: Trading Account is prepared to ascertain gross profit or loss for a period. It contains revenue (direct) items such as sales, purchases, and direct expenses, but not capital items, so R is incorrect.

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