Question

Explain the meaning of gain and profit. Distinguish between these two terms.

Answer 1

Explanation:

GAIN=increase in money

PROFIT=profit means icome

Answer 2

The difference between Profit and Gain is stated below:

Explanation:

• In terms of Accountancy,

1. Profit of a company can be defined as the net income obtained by the company by selling the products which it is producing. In mathematical terms, it can be defined as the difference between the total amount of money earned by the company by selling its products and the amount of money invested (expenditure) by the company for producing the product.
2. Gain can be defined as any additional amount of money that is credited to the company for performing a financial transaction that does not involve the products produced by the company. It can be obtained by selling an asset of the company, like a machinery, at a price which is more than its cost price, that is, the price at which the company had purchased the machinery.