Question

1.Gross profit is?
2.which should be charged in profit and loss account?

Answer 1

Answer:

1. Gross profit is the financial gain of a company after deduction of the costs necessary to manufacture and distribute its goods or services. These costs are referred to collectively as the cost of goods sold. ... The general gross profit definition considers only variable costs for its deductions.

2. A profit and loss account will include your credits (which includes turnover and other income) and deduct your debits (which includes allowances, cost of sales and overheads). These are used to find your bottom line figure – either your net profit or your net loss.