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why gross profit transfering to profit & loss account
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Answer Posted / ravi
sales-cogs =g.p (or) g.p/sales*100
gross profit is derived while preparing trading a/c as it appear in trading a/c debit side.
As it is a profit that's why it's treated as income in p&l
a/c and the expenses are deducted if the differences appear in debit side of p&l a/c it is net profit. if it appears on credit side it is net loss
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