Question

Hey ya guyz
I need ur help.......

#What will be the Journal entry for gross profit..??

plzzz......answer fast..☺️

n' NO SPAM!!!!!!

Answer 1

Gross Profit is the final result (either positive or negative) after considering all the Sales income ,stock ,direct expenses,manufacturing expenses,unavoidable expenses of an entity.It is the final outcome of a trading account.

So its not like a n ordinary journal entry for gross profit..It is moreover like a "Closing entry"

"Closing entry" in the sense ...we transfer the gross profit to the Profit and loss account .when it is further matched up with all the other incomes,indirect expenses,adminstrative expensive etc.. in order to give us True profit of the entity..I.e., Netprofit...

So the Entry will be -

when there is a gross profit....

Trading a/c Dr

To Profit and loss a/c

(Being Gross profit transferred to P & L a/c)


when there is gross loss..the Entry will be exactly opposite...

Profit and loss a/c Dr

To Trading a/c

(Being Gross loss transferred to P & L a/c)

Answer 2

Answer:

Gross product is the final result