Net Vs Total Amount
Total is the sum of the balance of an account line item such as cash, accounts receivable, inventory, and so on. Net amount is the total amount in one account after deducting a certain amount. For example, net accounts receivable is the total of accounts receivable balance deduct any allowance for bad debt.
Example of Net Amount
- Net Sale Is the amount of sale after deduction of return and refund. It is the real amount which the company has received.
- Net Asset: is the amount of total asset minus total liabilities.
- Net Income: is the profit that the company made over an accounting period.
Example of Total amount
- Total sale: is the amount of sale which the company generates over a period of month or year. It prior to the deduction of sale return and refund.
- Total Asset: is the total amount which we could find in the balance sheet. Total asset is equal to liabilities plus equity, as the accounting equation.
- Total income is the total turnover which the company has made in an accounting period.