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what is the diffrence between gross profit& net proffit?
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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 |
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