The net profit or loss for the year is determined in profit and loss account after
deducting purchases from sales
deducting cost of goods sold from sales and adding administrative expenses
adding commissions received to gross profit
eliminating all expenses from gross profit and adding any other income
Explanation
No explanation available
Video Explanation
No video available
Post your Contribution
Discussions (27)
I think dey made a typing error bcos d answer can neva b C, d correct answer is D in d sense dat net profit can b actualize only if d gross profit is added to oda income received den subtracted 4rm all expenses incurred
I tink I now underrstand their answer, option c was chosen bcos dey assume dey were not given expenses, so d Netprrofit will be GP+ other income
I sincerely dont think that is d ansa, pls can i get a better explanation for that answer..
i disagree with d ansa above. the right ansa is D. Gross profit + other incomes less expenses give net profit
The ansa is D cos u wil get ur net profit by eliminatin ur xpenses 4rm ur gross profit nd den add al oda i ncome
Its absolutly impossible for c to be regarded as the correct answer bcos even with common sense there is no way gross profit +commission will give birth to net profit. Its totally unethical and unproffessional.
I think the answer is not there, bcos Net profit is Gross profit+other income- expenses. And answer d is tell us dat Net profit is eliminating all expenses 4rm GP & adding other income. Wat am saying is that we can't eliminate expenses 4rm GP until we add the income if given, it is only wen we re nt given dat we can get our NP like dis GP- expenses
Hey guys, all expenses includes Carriage inwards o,but we add it to purchases in d trading account already,so to me that word"all expenses"disqualified option D
I hope all these people that commented 10 years ago are now a chattered Accountants,lol
i don't even know this app has been in existence since 10 years ago
wow,i was a child then,lol.
so annoying. I said is c to myself before opening the answer to see is c they marked too. but I'm very much confused here this is not once or twice im seeing all this... meant comments disagreeing with the answers they give. does it mean they are giving us wrong answers??? is so unfair if so. I get to quit in here b4 they full my memory with wrong answers. need some replies about the answers they are giving us. thanks Nd God bless.
with due respect the answer is D why? because all expense must be deducted from the main balance of the gross profit after all other income has been credited and added to it. i wished i could draw the format here.
