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4. What is the difference between gross profit and net
profit?
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Answer / 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 |
Answer / prasanna
before any deductions is gross after deductions is net
profit
| Is This Answer Correct ? | 74 Yes | 23 No |
Answer / laxmi prasanna
before any deductions net after deductions
| Is This Answer Correct ? | 81 Yes | 36 No |
Answer / amir
Gross Profit is showed Dr side in the trading A/c and it
shows that how much company gained during the period on the
sales and all the direct expenses will be included for
calculating G/P whereas Net profit is showed dr side in the
profit and loss A/c and balance of gross profit is showed
cr side in the profit and loss a/c whereas net profit is
showed liabilities side in the balance sheet and added in
the capital .
| Is This Answer Correct ? | 38 Yes | 10 No |
Answer / basavaraju
gross profit obtained after deducting sale and cost of
goods sold, balance represent as a Gross profit where as
net profit is obtained after deducting expenses of
administration etc., and balance represent as net profit.
| Is This Answer Correct ? | 25 Yes | 9 No |
Answer / srikanth
SALES - MATERIAL+LABOUR+OH= G.P
N.P= G.P-ALL IN DIRECT EXP
| Is This Answer Correct ? | 16 Yes | 10 No |
Answer / satyaki_raju@yahoo.com
gross profit means the sales revenue minus all costs
relinting to sales .These costs includes manufacturing,cost
of raw materialsand all direct costs
Net profit means Thae balance of gross proft after meeting
all the administrative overheads
| Is This Answer Correct ? | 11 Yes | 8 No |
Answer / baddam.venugopalreddy
gross profit means the remaining amount after deducting it's
all direct expanses, but where as net profit is the
remaining amount deducting all indirect expenses and losses...
| Is This Answer Correct ? | 14 Yes | 12 No |
Answer / md. habibur rahaman khan
Gross Profit= Operating Revenues - Operating Expenses
Net Profit= Administrative Revenues - Administrative Expenses
| Is This Answer Correct ? | 1 Yes | 0 No |
Answer / hafeez
Here is how you reach net profit on a P&L (Profit & Loss)
account:
1.Sales Revenue = Price (of product) X Quantity Sold
2.Gross profit = sales revenue – cost of sales and other
direct costs
3.Operating profit (EBIT, earnings before interest and
taxes) = Gross profit – overheads and other indirect costs
4.Pretax Profit (EBT, earnings before taxes) = operating
profit – one off items and redundancy payments, staff
restructuring – interest payable
5.Net profit= Pre-tax profit – tax
6.Retained earnings = Profit after tax – Dividends
| Is This Answer Correct ? | 1 Yes | 0 No |
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Liabilities: 2006 2007 Assets 2006 2007 Trade Creditiors 100 40 Cash atBank 100 65 Bills Payable 50 60 Account/R 105 120 Outstanding Expenses 25 20 B/R 130 140 Bonds Payable 220 140 Inventory 110 40 Accumulated Depreciation: Machinery 120 160 -on Machinery 30 35 Building 300 310 -On Building 75 85 Land 60 130 Reserves 100 115 Patents 55 60 Retained Earning 130 170 share Capital 250 360 Profit from operation after providing Rs.10,000as depreciation on building and Rs.10,000 on machinery and Rs.5,000 as amortization on patents for the year 'April 06- March07' was Rs.35,000. Other revenues for the year were Rs.40,000. An old machine with original cost of Rs.15,000 was sold at a loss of rs.5,000. Prepare Fund Flow Statment and Cash Flow Statment for the year ending March 31 2007 based on the information given above.
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