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what is the difference between gross profit and net profit?
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Answer Posted / 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 |
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