where do you consider salary in an income statement?
whether it is to be taken before gross profit or after net
profit? answer with reasons.
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Answer / girija
The salary income should appear after the gross profit
only. The expenses before GP are only the manufacturing
cost or cost related to sales.
Is This Answer Correct ? | 7 Yes | 0 No |
Answer / srinivas annavarapu
Salary will come under expenditure and will be debited to
P&L account after gross profit to arrive at net profit.
The reason is Salary is an administrative expenditure hence
it is to be taken after GP and before NP.
Is This Answer Correct ? | 5 Yes | 0 No |
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