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calculation of Gross Profit Amount and Closing Stock

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Querist : Anonymous

Querist : Anonymous (Querist)

20 March 2010 Respected CCI member please heip me regarding valuation of closing stock of trading partnership firm of stationery .

Opening Stock NIL
Purcahse 489475 , sales 259590
Direct Income 8601,

Can any one help me for finding out gross profit and closing stock amount.
And i also want to know what should be gross profit and net profit ratio in trading business.

SRINIVAS SRIRAJ

SRINIVAS SRIRAJ (Expert)
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20 March 2010 There is no standard GP/NP ratios. They differ from business to business from product to product and also depends on whether a trader is a Retailer or a Wholesaler.

"Closing stock" is the value of goods that are available as unsold stock as at the end of the financial period which is usually one year. You have to quantify the unsold stock and evaluate them.

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