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4. What is the difference between gross profit and net
profit?
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Answer Posted / vinotha.v
1. GROSS PROFIT = [OPENING STOCK + PURCHASE ( PURCHAS -
PURCHASE RETURN) + DIRCET EXPENSES] - [SALES ( SALES -
SALES RETURN)+ CLOSING STOCK].
NET PROFIT = [GROSS PROFIT + INCOMES] - [EXPENDITURE]
2. GROSS PROFIT INCLUDED THE DIRECT EXPENSES.
NET PROFIT INCLUDED ONLY INDIRECT EXPENSES.
CALCULATION :
1. NET PROFIT = GROSS PROFIT + ALL INCOMES - ALL
EXPENDITURE.
2. GROSS PROFIT = NET PROFIT + ALL EXPENDITURE - ALL INCOMES
| Is This Answer Correct ? | 87 Yes | 27 No |
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