Gross profit

This query is : Resolved 

26 June 2013 hello experts,

Can a small dealer's Gross profit exceeds its sales because of closing stock.

26 June 2013 No question of profit exceeding sales. If it exceeds, u have valued ur closing stock at very high and incorrect rates.

26 June 2013 ya i know that...but dealer is paying very high rent and he wants to show profit so he valued his stock at high rate

26 June 2013 can we take Lease rent of the shop as a direct exp. for the dealer

26 June 2013 If it is a direct expense related to stock, u can take it. Even then, ur gross profit cannot exceed ur sales.

26 June 2013 ya if i take lease rent as a direct exp. for dealer then G.P. is lower then sale it will be 43%. but i have a doubt that can lease rent be considered as direct exp. or not

26 June 2013 It needs to be decided on a case to case basis. If it can be rendered as direct expense, then load them in closing stock else not.

26 June 2013 what you mean by load them in closing stock?

26 June 2013 If it is a direct expense related to stock, then the closing stock value shall also include proportionate value of direct expenses also.

26 June 2013 ok...thanks a lot


You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now



Similar Resolved Queries


loading


Unanswered Queries



CCI Pro



Answer Query



Company
20 September 2026
Semi Qualified CA

Navin & Associates

Mumbai

CA Inter

View Details
Company
09 September 2026
Chartered Accountant

Aviv Global Private Limited

Ahmedabad

CA

View Details
Company
ARTICLESHIP 16 September 2026
Article Assistant

MANUJ SHARMA AND COMPANY

Noida

CA Inter

View Details
Company
ARTICLESHIP 15 September 2026
Freelance Taxation Content Writer Intern

Interactive Media Pvt Ltd.

New Delhi

CA Inter

View Details
Company
Featured 12 September 2026
Assistant Manager - Finance & Compliance

Naveen Fintech Pvt Ltd

Kolkata

CA Inter

View Details
Company
Featured 03 October 2026
Accountant

A P Lodha and Associates

Jalna

B.Com

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
ARTICLESHIP 07 September 2026
Article/ Paid Assistant

Murali and Sumeet Chartered Accountant

Bengaluru

CA Foundation

View Details