Answer / ashkar ali v.k

NET PROFIT IS PROFIT AFTER ALL INDIRECT EXPENCES AND
TAXES. BUT THE GROSS PROFIT IS PROFIT ONLY DEDUCTING
PURCHASES AND DIRECT EXPENCES(FRIEGHT, LOADING) FROM NET
SALES

Answer / sachin pote

gross profit=sales-opening stock-purchases-manufactuing exp
net profit=gross profit+opeating incomes-opertaing exp.

operating exp is indirect exp,office exp.

Answer / b.balaramakrishna

The diference between gross profit and net profit is, the
gross profit is sales+closing stock-purchases+freight
outwards that is trading account. and whereas net profit
is, the diference of income and indirect exps - gross
profit.

Answer / krishnakishore

G.P- sales- Operating Expenses= Net Profit

Answer / dkgm

Here is how you reach net profit on a P&L (Profit & Loss) account:
Sales Revenue = Price (of product) X Quantity Sold
Gross profit = sales revenue – cost of sales and other direct costs
Operating profit (EBIT, earnings before interest and taxes) = Gross profit – overheads and other indirect costs
Pretax Profit (EBT, earnings before taxes) = operating profit – one off items and redundancy payments, staff restructuring – interest payable
Net profit= Pre-tax profit – tax
Retained earnings = Profit after tax – Dividends

Answer / lavanya

Befor Tax deduction and deducting expenses is gross profit.
Net profit means after deduction all the expenses and taxes.
Net Profit = Gross income - Expenses

Answer / barodianbuddy(acca)

SIMPLY (ACCORDING TO IAS 1),
GROSS PROFIT= REVENUE - COST OF SALES
NET PROFIT OR PROFIT FOR THE YEAR = GROSS PROFIT + OTHER INCOME - DIST EXPEN - ADMN EXPEN - OTHER EXPEN - FINANCE COST - INCOME TAX EXPENSE.

Answer / dhanesh chandramangalam

gross profit comes after deduction of all direct expenses
from direct income, but net profit comes after deduction of
all indirect expenses [including tax] from gross profit&
indirct incomes

Answer / deepak choudhary

Gross profit is the difference between Sales and Cost of Sales. Cost of Sales is the purchase price of the goods to be sold together with the cost of getting them ready for sale.
eg A manufacturer would charge production labour and some overheads to Gross Profit.

Net profit remains after all expenses except for profit tax have been charged to the gross profit. These may include Staff salaries, rent, rates, motor expenses, auditors' remuneration etc.

Answer / govinda_mahato05

Gross profit is the difference between Sales and Cost of Sales. Cost of Sales is the purchase price of the goods to be sold together with the cost of getting them ready for sale.


Net profit remains after all expenses except for profit tax have been charged to the gross profit. These may include Staff salaries, rent, rates, motor expenses, auditors' remuneration etc.

when we have to use form 12ba in income tax with example

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