what is gross profit?
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Answer / manisha
gross profit is the profit which relates to trading
i.e.purchase and sales . Gross profit means that profit
from which expenditures which are indirect are not deducted
as it is gross not net.Gross profit is carried down to net
profit.There may be a gross loss in the trading also.
Entries :-
Trading account dr.
To gross profit
(being gross profit)
Gross loss dr.
TO trading account
(being gross loss)
Gross profit= sales- cost of goods sold
cost of goods sold = opening stock+purchases-closing stock
Trading account
To opening stock xx By sales xx
To purchases xx - sales returnx xx
- purchases
return x xx By closing stock x
To wages xx By gross loss
To direct exp. x
To gross profit
| Is This Answer Correct ? | 12 Yes | 0 No |
Answer / mahesh babu
Gross profit=sales-cost of goods sold
Gross profit =(sales+purchase returns+closing stock)-
(purchases+direct exp)
This gross Profit is relatives trading Account.
| Is This Answer Correct ? | 9 Yes | 0 No |
Answer / anoj
The difference between sales and cost of goods sold is
known as gross profit.
Gross profit=( sales - cost of goods sold)
| Is This Answer Correct ? | 5 Yes | 0 No |
gross profit means (Purchase-p.returns)- (sales-s. returns)-
closing stock. for example.
particulars amount. particulars amount
Purchae xxx Sales xxx
(-)p.returns xxx xxxx (-)s.returns xxx xxxx
Fright inwards xxxx Closing Stock xxxx
Gross profit xxxx Gross Loss xxxx
| Is This Answer Correct ? | 7 Yes | 3 No |
Answer / rajesh
Net sales revenues minus the cost of goods sold is called
gross profit
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / kanchan
Gross proit =(opening stock + purchase+ diredt expenses-
purchase return) - (sales + closing stock+ ditect income)-
sales retun
gross profit is excess of the trading a/c debit side
Groos profit a/c dr.
To Trading a/c cr.
(being gross Profit)
Gorss proit is (sales- Cost of Goods Sold)
it carry forward to profit & loss a/c
all indirect expenses deducet in profit & loss a/c in which
gross proit and add indiredt income then calculating in
net profit
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / madhu naidu
In short, Excess of Net sales over its cost of goods sold
is called Gross Profit.
Gross profit = Net sales-cost of goods sold.
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / faisal adam
a gross profit is the gross which from after expenses, but
not less a taxes, it is mean there is a taxe with it that
wasnot yet collected by goverment
not yet
| Is This Answer Correct ? | 1 Yes | 1 No |
Answer / satyaki_raju@yahoo.com
gross profit is the excess of Revenue over cost of goods
| Is This Answer Correct ? | 0 Yes | 1 No |
Answer / gohar ali pugc
Calculated as sales minus all costs directly related to
those sales. These costs can include manufacturing
expenses, raw materials, labor, selling, marketing
expense,Administrative expense and other expenses.
| Is This Answer Correct ? | 0 Yes | 1 No |
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42. G.Simkins sends back stock to J.J. Fabrics (a supplier), having originally purchased it on Credit. J.J. fabrics issued a Credit note for the value of these goods. In simkins’ books, the double entry for this transaction should be. a) Debit : J.J. Fabrics; Credit purchases b) Debit : purchases; credit J.J. Fabrics c) Debit : J.J. Fabrics; credit purchase returns d) Debit: purchases returns; credit J.J Fabrics.
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