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what is the difference between gross profit and net profit?
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gross profit is a profit before tax
net profit is a after tax
| Is This Answer Correct ? | 14 Yes | 3 No |
gross profit is profit before deduction of indirect
expenditure
Net profit is after deduction of expenditure from gross
profit
| Is This Answer Correct ? | 8 Yes | 0 No |
Answer / sonali
Gross profit is the closing balance in the debit side of
the Trading account. Trading account consists of the
factory expenses and inflow of cash.
Net profit is the closing balance at the debit side of the
P and L account. It consists of office income and expenses.
Net profit is the figure arrived at after deducting tax and
depreciation.
| Is This Answer Correct ? | 8 Yes | 3 No |
Answer / tanmoy
Profit shown in trading acccount is Gross Profit, in which
indirect expenses & incomes are not included.
Profit shown in P/L a/c. is net Profit, it includes all
indirect expenses, overheads, selling & distribution exp,
administration exp, financial exp etc.
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / nirmal
GROSS PROFIT - GROSS PROFIT IS PROFIT BEFORE TAX. IT IS THE
CLOSING BALANCE IN THE DEBIT SIDE OF TRADING ACCOUNT.
NET PROFIT - NET PROFIT IS PROFIT AFTER TAX.
| Is This Answer Correct ? | 4 Yes | 0 No |
Answer / beverly
Gross profit is profit without deduction of tax while net profit is a profit after tax.
| Is This Answer Correct ? | 3 Yes | 1 No |
Answer / kor
Gross Profit is that deducted the Fixed Costs only from
Total Sales/ Revenue
on the other hand Net Profit is that deducted all cost/
Expenses from Total Sales/ Revenue
For Example even if a company spend money in daily Tea
entertainment it will deduct in Net Profit not in Gross
Profit.
| Is This Answer Correct ? | 0 Yes | 0 No |
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