Net profit is calculated in the Profit and Loss Account (Option A). Here's a step-by-step explanation:

1. The Profit and Loss Account is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time.

2. This account is used to calculate the net profit or loss of a business.

3. The process begins by listing all the revenues of the business, then subtracting the cost of goods sold to find the gross profit.

4. Next, all operating expenses are subtracted from the gross profit to find the operating profit.

5. Finally, any other expenses, taxes, and interest are subtracted from the operating profit to find the net profit.

6. Therefore, the net profit is calculated in the Profit and Loss Account.

Question

Net profit is calculated in the Profit and Loss Account (Option A). Here's a step-by-step explanation:

1. The Profit and Loss Account is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time.

2. This account is used to calculate the net profit or loss of a business.

3. The process begins by listing all the revenues of the business, then subtracting the cost of goods sold to find the gross profit.

4. Next, all operating expenses are subtracted from the gross profit to find the operating profit.

5. Finally, any other expenses, taxes, and interest are subtracted from the operating profit to find the net profit.

6. Therefore, the net profit is calculated in the Profit and Loss Account.

Knowee AI · Accepted Answer

Net profit is calculated in the Profit and Loss Account (Option A). Here's a step-by-step explanation:

1. The Profit and Loss Account is a financial statement that summarizes the revenues, costs, and expenses incurred during a specific period of time.

2. This account is used to calculate the net profit or loss of a business.

3. The process begins by listing all the revenues of the business, then subtracting the cost of goods sold to find the gross profit.

4. Next, all operating expenses are subtracted from the gross profit to find the operating profit.

5. Finally, any other expenses, taxes, and interest are subtracted from the operating profit to find the net profit.

6. Therefore, the net profit is calculated in the Profit and Loss Account.

Net profit is calculated in which of the following account?A) Profit and loss accountB) Balance sheetC) Trial balanceD) Trading account