Question

Net profit is calculation in the :
(a) profit and loss account
(b) trial balance
(c) balance shee
(d) trading account​

Answer 1

In order to arrive at the balance sheet of a business, one needs to prepare the trading account and profit and loss account first. This account is prepared to arrive at the figure of revenue earned or loss incurred during a period. Let us understand the trading account and profit and loss account in detail.

Answer 2

Answer:

The correct answer is Profit and loss account

Explanation:

Net profit is the amount which is earned by owner of business after adjusting all income and expenses.

All income (operating and non-operating revenue) - All Expenses (operating and non-operating expenses) = Net profit

Net profit is calculated in profit and loss account

Profit and loss account is prepared after trading account (Trading account provide gross profit which is transferred to profit and loss account)

After knowing gross profit and transferred to profit and loss account

Debit all expenses such indirect expenses and non-operating expenses and Credit all income such as indirect income and non-operating incomes.

Balance amount on debit side shows net profit of the firms.

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