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As we know that the profit is calculated by deducting the cost from the sale or revenue, which is earned by the regular business transaction. Whereas gain is conducted by sale of assets or investment!
Profit: Income derived from the regular business activity, by deploying caplital labour and time.In other words it is the return on the capital employed after deducting all working capital and fixed expenses.usually appears on the liabilities side of the balance sheet.Gain: Income derived on investment over a period of time time not falling under regular business activity.it is the return derived on investment.
Gain- income derived from investments;profit- income derived from business activity
A profit is a result of operating activities of the business, whereas gain is the result of any unexpected transaction like gain on sale of fixed asset.
Profit is the total sales minus cost, i.e. that earned from the regular business operations. Whereas gain is regarding the additional amount earned on an investment.
Generally profit is more related to the daily operational transactions of the business unlike gain which is from sale of assets / investments.
