Question

Sold goods to Yamini of list price of * 25,000 for 23,000. ​

Answer 1

Explanation:

Gross Profit is the profit that the company makes after deducting the costs associated with the operations from the sale proceeds of the business operations.

It does not take into consideration any of the non-operational expenses i.e., office expenses, administration expenses and other indirect expenses.

Therefore, to find gross profit, administration expenses will not be deducted.

Gross profit = Sales - Cost of Goods Sold