Gross Profit
Definition
The profit earned from the core trading activities of a business, calculated as Net Sales minus Cost of Goods Sold (COGS). It reflects how efficiently a company uses its direct resources.
Example
"With Net Sales of ₹8,00,000 and COGS of ₹5,50,000, the Gross Profit is ₹2,50,000, shown as a credit balance in the Trading Account."