A trading profit and loss account priorly serves these two purposes:Computing the net income for the period.Identify the major revenue and expense items that affect the net income.An accountant is required to compute the net income by subtracting the expenses from the revenues.The profit & loss account provides information about an enterprise's income and expenses, this results in the net profit or net loss, which helps a businessman to evaluate the performance of an enterprise and provides a basis for forecasting the future performance.While a Trading account helps to know the gross profit or loss, this helps to know the amount of the purchases, expenses that relate to the purchases, and the manufacturing expenses which help to know the percentage of gross profit and sales.