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Doubt regarding the first chapter - framework

Accountancy

This question might sound very basic but i would like to know the reason for it. Why does the P&l a/c doesn't contain gross profit?

Sainisha Ramesh

CA Inter

★ 200

16-Mar-21 19:35

250

Answers (2)

Gross profit is more an internal calculation. There is no standard template as such, better not to show unless specifically asked. Even in Statement of Profit & Loss as per Schedule III of Companies Act, there is no line item called Gross Profit.

Sahibdeep Singh

CA Inter

★ 14K+

17-Mar-21 10:32

Thank you so much for clearing my doubt.

Thread Starter

Sainisha Ramesh

CA Inter

★ 200

17-Mar-21 10:36

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Doubt regarding the first chapter - framework

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