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When calculating gross profit is the debit side a profit or loss?
Wiki User
∙ 11y ago
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Wiki User
∙ 11y ago
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What is debit balance of profit and loss account?
Debit balance of Profit & Loss Account represents "Loss"
Is operating expense on Profit and Loss?
Operating expense is a loss, but is used in calculating overall profit.
How do you calculate net profit margin if there is net loss?
The Gross Profit Margin = Gross Profit/Revenue*100 regardless of weather the Gross Profit is positive or negative (a loss). Therefor, it is acceptable to have a negative Gross Profit Margin.
What are the differences between gross profit and full cost profit?
gross profit is taken from the profit and loss account
What is the journal entry for profit transfer from profit and loss account to balance sheet?
Debit profit and loss accountCredit owners capital
What is the formula for calculating loss?
You calculate loss the same as you would do profit income minus expenses (outgoings) = profit/loss If the answer is negative then you are making a loss, if the answer is positive then you are making a profit.
Explain how a business can earn a positive gross profit on its sales and still have a net loss?
A business can earn a positive gross profit on its sales and still have a net loss. The gross profit is simply the sales minus cost of goods sold. If the gross profit is less than expenditure, it will result into a net loss.
How do I Find the incremental profit or loss?
The incremental profit or loss is the change in profit or loss over the designated time period. After calculating the profit or loss, for example on a monthly basis, the delta between that and the average monthly profit or loss from the prior year can be determined.
What is the journal entry to record fixed asset disposals?
[Debit] Accululated Depreciation xxxx [Debit] Loss on disposal of asset xxxx [Credit] Asset account xxxx Entry 2 [debit] Profit and loss account xxxx [Credit] Loss on disposal of asset xxxx
When debit amount of profit and loss account is greater than the credit amount you say the firm is in loss but when assets of the firm increases it is taken as debit ac how?
It is gained.
Can the balance sheet be balanced when there is a gross profit and a net loss?
Yes it can. In this case it just means that overheads were higher than the gross profit (Sales less Cost of Goods Sold) resulting in an overal loss.
How is gross profit calculated?
Gross profit is calculated by taking your net sales (sales - sales discounts) and subtracting your cost of goods sold.
