Gross Profit or Gross Loss

When the Trading A/c is completed, both sides must be in balance. If without the Gross Profit or Gross Loss, the entries on the two sides will not respectively sum up to be equal. Gross Profit to be entered on the debit side or Gross Loss to be entered on the credit side will lead to balancing the two sides. The appropriate amount should accordingly be entered as Gross Profit or Gross Loss in the debit or credit side respectively so as to finally balance the sides. These will be noted as carried down (c/d) to or by P & L A/c.