Interested to Buy Any Domain ? << Click Here >> for more details...
what is the diffrence between gross profit& net proffit?
- 8 Answers
- 19204 Views
- Capital IQ, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / priyanka
gross profit is the result of the operating activities i.e.
sale and purchase (items of the trading a/c)whereas while
calculating net profit we also take into consideration the
non-operating expenses and income(items of p&l a/c).
| Is This Answer Correct ? | 53 Yes | 2 No |
Answer / vikram
G.P = Sales + any operating income-operating exp
N.P = G.P + any non-operating income - non-operating exp
| Is This Answer Correct ? | 9 Yes | 2 No |
Answer / prathibha
gross profit is the profit arrived after adjusting
transactions like purchases and various direct expenses from
sales and closing stock...
net profit refers to the profit derived from adjusting
indirect expenses from gross profit and indirect incomes..
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / illuruviswam
gross profit enables us how much profit has been arrived jus
by doing purchasing and selling with direct costs.where as
in net profit included all other operaing and non
operating,income and non operating income.
| Is This Answer Correct ? | 7 Yes | 3 No |
Answer / g.suresh kumar
grossprofit comes under trading account
netprofit comes under profit and loss account
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / srikanta
G.P= NET SALES+CLOSING STK-NET PURCHASE-DIRECT COST
N.P=G.P+NON OPERATING INCOME-NON OPERATING EXP
| Is This Answer Correct ? | 3 Yes | 0 No |
Answer / sanjeeb kumar panda
Gross Profit or Loss:
Gross profit is ascertained by deducting cost of goods sold (all direct expenses like purchases, carriage, custom duty, sock charges, octroi duty etc.) from sales.
Gross profit = Total sales - All direct expenses or cost of goods sold
For example, suppose Mr. X purchased some goods for $10,000 and paid $200 on account of carriage and $100 as octroi duty. He sold the goods for $1,4000. Now, the cost of goods sold will be $10,300 (10,000 + 200 + 100) and gross profit will be $3,700.
Gross profit = Total sales - Cost of goods sold
= 14000 - 10300
=3,700
Thus the account which is prepared to determine the gross profit or gross loss of a business concern is called trading account.
Net Profit or Loss:
It is ascertained by deducting all indirect expenses (the expenses incurred for running the business and selling the goods) from the gross profit.
Net profit = Gross profit - All indirect expenses
Suppose in the above example, Mr. X paid $1,000 as salaries and $500 as rent. His net profit will be $2,200.
Net profit = Gross profit - All indirect expenses
= 3,700 - 1,500
= 2,200
Thus the account which is prepared to determine the net profit or net loss of a business concern is called profit and loss account
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / shaik bajivali
NET PROFIT IS THE PROFIT THAT ARAISES AFTER THE DEDUCTION
OF ALL EXPENSES INCLUDING OFFICE EXPENSES.
AND GROSS PROFIT ARAISES AFTER DEDUCTIONS OF ONLY TRADING
A. CEXPENSES AND IN THESE ONLY MANUFACTURING COST IS
DEDUCTED
| Is This Answer Correct ? | 4 Yes | 6 No |
Is the the invoice number and voucher no will be same most of the time or it should be same?
please tell me questions asked in NICMAR for the post of accounts executive
fd redeem interest and principal entry in tally
Expand---------NMOP
Expand---------CAIR
What is the difference between SL and GL ?
what is the difference betwen p & l a\c and income & expenditure statement
how important of purchase and sales invoices?
From the following find out a. Profit Volume ratio b. Break even point c. Sales for 40% P/V Ratio d. Margin of safety from the sales Rs 3,00,000 e. Net profit from the sales of Rs 3,00,000 f. Required sales for the new profit of Rs 70,000 g. Required sales for the net profit of Rs 70,,000 after tax, the corporate income tax being 40% h. Additional sales required to convert an increase of Rs 3000 p.a. in the sales manager salary Sale 2,00,000 Variable Overheads 1,50,000 Profit 50000 Fixed overheads 15000 Net profit 35000 Sl No Heads of Account Debit Rs Credit Rs 1 Drawing and Capital 750 15,000 2 Stock as on 01.01.2009 69720 3 Bills Receivable and bills payable 1000 1180 4 Returns 300 320 5 Purchases and Sales 4500 8300 6 Wages 70 7 Discount 30 8 Salaries 200 9 Canara Bank Shares 3000 10 Insurance 120 11 Building 3000 12 Furniture 700 13 Debtors and Creditors 600 1300 14 Cash in Hand 470 15 Overdraft at bank 900
Ramana,our customer directly deposited into our Bank a/c
Are you worrying about preparation for accounts interview.Dont worry I prepared 6 sets of question papers with answer books to help you in getting a job and help the employee to get promotion with good hike in remuneration and position.I am sincerly waiting for the needy
Expand-------ACNS
Audit 
