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Goongan (Student) (450 Points)

10 May 2007

Hi friends I am confuse the following term please discuss brifely.....
- Differance between  PROFIT      &  INCOME
- Differance between  INCOME     & GAIN
- Differance between  LOSS          &  EXPENSES
- Differance between  EXPENSES  &  EXPENDITURE

Dear friends thease words always confuse me on solving problems of tax & A/C...... I am sorry if you also confuse after reading my Questions. not confuse & replay me I am waiting for......

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12 Replies

Shiv Prakash (164 Points)
Replied 10 May 2007

how can u do CA if u donot understand these basic concepts.
u need to read an good dictitionary.

Abrar (40 Points)
Replied 10 May 2007

you better go on for a nice dictionary, it will help you a lot.
there is no much difference between them, they are just similar not different

Hgmi U (28 Points)
Replied 10 May 2007

Expense is the cost of something
Expenditure is the process of spending or the amount of money spent

Anand Trivedi (16 Points)
Replied 10 May 2007

A good Questions ....really many many may confuse while dealing with the Terms..my explanation is:

- PROFIT Equals to INCOME Minus EXPENDITURE & INCOME is the sum total of INVOICES raised for Goods or Services.........normally used for Revenue nature of Transactions.
- INCOME is the Sum Total of all Invoices Raised for the Sales Activities of what ever nature & GAIN equals to SALES PRICE Minus COST OF PURCHASE..........normally used for Capital Nature of Transactions.
- LOSS equals to EXPENSES Minus INCOME & EXPENSES means sum total of Expenditure on various Account e.g. Man, Materials and machines.
-EXPENSES & EXPENDITURE as above already.

Farzana Dalal (13 Points)
Replied 10 May 2007

Sorry, this words or terms are key words that is taught in very begning when any student start persuing CA or any Account Gratuation course

Regards
CA farzana

Sukumara (40 Points)
Replied 10 May 2007

Expenses are actually related to CUrrent year which normally gets reflected in the cash or bank book where as the term Expenditure refers to the items which are being highlighted in the Profit and Loss account. It also includes the previous or prior period items also

AMIT (Audit Assistant) (102 Points)
Replied 03 July 2007

No comments on this topic

Shaily Jain (Chartered Accountants) (1054 Points)
Replied 04 July 2007

1.Profit and Income:- Profit is wht u earned after sale something while Income is wht u earned from other activity like Int is income and profit is which u ve recieved after sale of car. 2.Income and gain:-income already explaind and gain is generally used in capital nature items. 3.Loss & Expenses :- Loss is wht u loosed after sale and expenses are like salary etc. as salary is not ur loss u r nt loosing somthing by paid salary bcoz for this u get some work while u ve sold ur car for rs. 50000 which u ve purchased 70000 then u r loosing 20000 so this is loss 4.Expenses & expenditure :-expenses already explained and expenditure is an amt which u spent. Hi, i m nt expert so if there is something wrong pl let me know i also wanna improve my knowledge

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Dear Dharambeer, dont be confused about this i will try to explain the same it might help you. what is profit? profit is a positive amount earned form the difference of Sales - purchase - expenses for sales - taxe and duties. this is your net profit earned, Whereas Income is an money which is beeing received form perfoming an profession or a Job or Jobwork which relates to service provided such as salaries, & tution fees, also income form the property or capital gains is not a profit but the amount recieved form that is treated as income. gain is the difference amount which you receive form sale of property or assets after calcualtion of depreceiation and appreciation of an property or an asset. loss is a negative balance of Sales - purchase - expenses for sales - taxe and duties. where as expenses are money expenditure as well as money expected to be paid for expenditure for eg. profisions made at the end of financial year. & expenditure is an amount actually paid as an expenses. hope this clearification will help you a lot if there is any more clerification please forward me the same to my email address