Question

how to calculate gross profit in trading account with eg plz​

Answer 1

Answer:

Gross profit in a trading account can be calculated by subtracting the cost of goods sold from the net sales. Gross profit = Net Sales – Cost of goods sold.

Answer 2

We can calculate gross profit as follows.

Explanation:

Gross profit is that profit or income which is left after we subtract all direct costs and expenses from the total net sales we have. it is calculated from trading account.

trading account is the account in which we record all sales and purchases that we make and also all the direct costs that we spent to make these sales and purchases. we can calculate gross profit from trading account by deducting the opening inventory, net purchases and direct expenses from closing inventory plus net sales.

we calculate gross profit from trading account as this :-

= [net sales ( sales - sales returns ) + closing stock ] - [ opening stock +    

 net purchases ( purchases - purchase return ) + all direct expenses.