[rk93]

Thank you for your reply Sir.
I wasn’t clear in my query.I am sorry for that, by profit I meant Profit or loss on sale of an asset.

How would profit or loss on sale of an asset be treated in indirect method and in direct method?

In the lecture while solving the example through indirect method :

Operating proft : 240,000
Less profit on sale : (6000)

Through Direct method : (at 18:35 in lecture)

Dist and admin : 120,000
Add Profit on sale : 6000

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