Net Profit
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Financial Statements of a Sole Proprietorship without Adjustments
MS: Untung Bersih · EN: Net Profit · ZH: 净利
Meaning
Net Profit is the actual profit of the business after all expenses are deducted and all other revenues are added to gross profit. It shows the overall performance of the business for the period. Net profit is added to the owner's capital in the Statement of Financial Position.
Example
Nikmat Catering earns a gross profit of RM25,000, other revenue of RM2,000 and total expenses of RM10,000. Net profit = 25,000 + 2,000 - 10,000 = RM17,000. This amount increases the owner's equity.
Source: DSKP KSSM Prinsip Perakaunan Tingkatan 4