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How will you find closing stock in trading and profit and loss account?
GROSS PROFIT = SALES - [OPENING STOCK + PURCHASES + DIRECT EXPENSES - CLOSING STOCK]... substitute if u have all the other values
What will be the effect of decrease in closing stock on gross profit?
i think Gross profit Will decrease
How do you enter closing stock in tally?
Closing Stock:-Last years Gross profit*Present year sales account+direct and indirect account+purchase account+opening stock-sales account
How do you compute gross profit?
Gross profit is the difference btwn trading revenues (i.e. sales, closing stock etc.) and trading expenses (i.e. purchases. opening stock, freight, wages, etc.) + Earned Revenues (from the sale of the usual business products or services) - Cost of Goods Sold (the direct cost of the business product or services that were sold above) -------------------------- = Gross Profit (also called Gross Margin)
Opening stock plus purchases minus closing stock is called?
Its COST OF GOODS SOLD (COGS) or simply Cost of Sales (COS). This number once deducted from Sales gives you Gross Profit.
How do you work out a gross profit percentage?
gross profit divided by sales Sales = 250000 Cost = 100000 gross profit = 150000 150000 / 250000 = 60%
How will you find closing stock in trading and profit and loss account?
GROSS PROFIT = SALES - [OPENING STOCK + PURCHASES + DIRECT EXPENSES - CLOSING STOCK]... substitute if u have all the other values
What will be the effect of decrease in closing stock on gross profit?
i think Gross profit Will decrease
How do you enter closing stock in tally?
Closing Stock:-Last years Gross profit*Present year sales account+direct and indirect account+purchase account+opening stock-sales account
What is the difference tween trial balance before closing and the trial balance after closing?
before we find gross profit ,after we got net profit
What is the effect on net profit if opening stock is undervalued?
If Opening Stock is undervalued, this will result in your Cost of Sales being understated and therefore Gross and Net Profit being overstated. Of course, since Opening Stock in this period is the last period's Closing Stock, this would mean that Closing Stock in the last period was understated too, meaning that Net Profit in the last period was understated. That doesn't make it OK though!
How do you compute gross profit?
Gross profit is the difference btwn trading revenues (i.e. sales, closing stock etc.) and trading expenses (i.e. purchases. opening stock, freight, wages, etc.) + Earned Revenues (from the sale of the usual business products or services) - Cost of Goods Sold (the direct cost of the business product or services that were sold above) -------------------------- = Gross Profit (also called Gross Margin)
What is the effect of closing stock on net profit?
A business remaining stock at the end of an accounting period is known as closing stock. It may include the finished goods, raw material and work in process and it is also deducted from the periods costs in the balance sheet. however sales in the trading a/c do have an effect on the gross profit and hence in the profit and loss a/c for the net profit. An increase or decrease in closing stock will have an effect on the net profit..if closing stock increase the gross profit will increse and vice versa. As the gross profit will increase the firm will able to deduct more expenses from it and hence the remaining will be the net profit.( increase)
What affects gross margin?
The Gross Margin, also known as the Gross Profit Margin, is an expression of the Gross Profit as a percentage of the Revenue. It is calculated using the following: Gross Profit Margin = Gross Profit/Revenue*100 Looking at the input variables of the equation, it is clear that the factors that would affect the Gross Profit Margin would be the Gross Profit and the Revenue. What affects Gross Profit and Revenue would be an endless topic of it's own.
How do you work out the net profit?
To determine your net profit , add up your annual expenses for the running of your business etc & subtract that figure from your gross profit. Or you get the gross profit by adding your opening stock at the beginning of the year & your annual purchases , deduct your closing stock from this figure & subtract the resulting figure from your annual sales. In simple words, GROSS PROFIT = SALES less COST OF SALES. (Cost of Sales covers all costs related directly to Sales) NET PROFIT = TOTAL EXPENSES less TOTAL REVENUE
How do you work out net profit?
To determine your net profit , add up your annual expenses for the running of your business etc & subtract that figure from your gross profit. we get the gross profit by adding your opening stock at the beginning of the year & your annual purchases , deduct your closing stock from this figure & subtract the resulting figure from your annual sales. In simple words, GROSS PROFIT = SALES less COST OF SALES. (Cost of Sales covers all costs related directly to Sales) NET PROFIT = TOTAL EXPENSES less TOTAL REVENUE
Opening stock plus purchases minus closing stock is called?
Its COST OF GOODS SOLD (COGS) or simply Cost of Sales (COS). This number once deducted from Sales gives you Gross Profit.
