GROSS PROFIT Increase / Decrease

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This discussion explores the relationship between sales and Gross Profit (GP). It explains that GP can decrease when sales increase and vice versa. The conversation also touches upon acceptable variations in GP percentages, suggesting that a 10-15% fluctuation might not raise audit concerns if justified by turnover changes.

Shahan

Shahan (Querist)
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30 September 2022 Sir Agar Sale Increase Hoti hai To G.P. decrease Hota hai agar sale decrease hota hai to G.P. INcrease hota hai G.P. To Audit YA Non Audit Ho G.p Kitne Point Tak increase Ya decrease kar sakte hai

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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30 September 2022 If you can justify the variations in GP with respect to turnover, there would not be any problem. Otherwise 10 to 15% variation is generally not questioned..

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Shahan

Shahan (Querist)
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01 October 2022 i don't understand 10 se 15 % kya app kah rahe hai

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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02 October 2022 If last year's GP was 20% and this year it increased to 23%, the variation is 15%.

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