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) are recorded the debit side whereas sales and closing stock

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canada goose sale outlet It can be described as excess of amount of ‘Sales’ over ‘Cost of Sales’. This definition can be explained in terms of following equation:Gross Profit = Sales Cost of goods sold or (Sales + Closing Stock) (Stock in the beginning + Purchases + Direct Expenses)The opening stock and purchases along with buying and bringing expenses (direct exp.) are recorded the debit side whereas sales and closing stock is recorded on the credit side. If credit side isJeater than the debit side the difference is written on the debit side as gross profit which is ultimately recorded on the credit side of profit and loss account. canada goose sale outlet

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