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What is the difference between net profit and Income?

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Question added by Muddasir Ilyas , Audit Assistant , PwC A.F. Ferguson & Co. Chartered Accountants
Date Posted: 2016/10/18
Mir Irfan
by Mir Irfan , Management Trainee , Jammu & Kashmir Bank Ltd

The earnings of an organization is its income  which is also called Gross earnings (reflected in trading account) on the other hand when we deduct all operating expenses plus interest plus depreciation plus  taxes from the gross profit we arrive at the figures of net profit .

Yasir Nazeer
by Yasir Nazeer , Accountant , AMI SAUDI ARABIA

Net profit after taxes is the net income of the organization less all taxes. It is the sum of all revenues less all expenses, including cost of goods sold and all taxes.

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