What does net profit mean in profit distribution?

Correct answer: Profit left after deducting all normal expenses

Net profit is the amount that remains from business income after the ordinary expenses of running the business have been deducted. Such expenses may include operating costs and other normal charges. It is not the same as the money received in cash, because accounting profit also considers amounts earned or payable under accounting rules. In partnership accounting, this remaining profit is the amount considered for distribution among partners according to the agreement.

Therefore, the description in option B is correct: net profit is the profit left after deducting all normal expenses. Option A refers to a stage before the goods are sold, while option C describes only a cash receipt and option D describes a partner’s personal income. Net profit belongs to the business before it is appropriated among partners.