Close off Purchase, Sales and Closing Stock Accounts at the end of a period

We need a Trading Account to close off the 3 accounts mentioned.

Transfer balance from Purchase Account to Trading Account

1. Debit Trading Account
   
2. Credit Purchase Account

Transfer balance from Sales Account to Trading Account

1. Debit Sales Account
2. Credit Trading Account

Transfer balance from Closing Stock Account to Trading Account

1. Debit Closing Stock Account
2. Credit Trading Account
   

Close off the Trading Account, then you will get either Gross Profit or Gross Loss value. If the balance is at the left side, then it is the gross profit, otherwise it is the gross loss.