Pls suggest me which s right approach.....!!!!
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
26 November 2012
D question s
Consider the following data pertaining to R ltd. for the month of June 2011
Opening stock - 30,000
Closing stock - 40,000
Purchases - 5,60,000
Return outwards - 15,000
Return inward - 20,000
Carriage inward - 5,000
If the gross profit is 20% of net sales , the gross sales for the month of June 2011 is what........????/
Ist approach :
Opening stock + purchases + carriage inward - return outward - closing stock = 5,40,000.....which I considered it as 80% of sales.....den for 100% we should calculate it as 5,40,000/.8 = 6,75,000.....!!!! Then with this amt add the net sales , then we get 6,95,000 as
gross sales ......!!!!
IInd approach :
Opening stock + purchases +
carriage inward - return outward - closing stock = 5,40,000...then nw less less 20% from return inward....so tat we can get the cost of goods returned .......!!!! So add this to 5,40,000 i.e 5,40,000+16,000=5,56,000......!!!! Then nw 5,56,000/.8 = 6,95,000.....!!!!!
Nw plzzz suggest me which one is right approach .......?????
Consider the following data pertaining to R ltd. for the month of June 2011
Opening stock - 30,000
Closing stock - 40,000
Purchases - 5,60,000
Return outwards - 15,000
Return inward - 20,000
Carriage inward - 5,000
If the gross profit is 20% of net sales , the gross sales for the month of June 2011 is what........????/
Ist approach :
Opening stock + purchases + carriage inward - return outward - closing stock = 5,40,000.....which I considered it as 80% of sales.....den for 100% we should calculate it as 5,40,000/.8 = 6,75,000.....!!!! Then with this amt add the net sales , then we get 6,95,000 as
gross sales ......!!!!
IInd approach :
Opening stock + purchases +
carriage inward - return outward - closing stock = 5,40,000...then nw less less 20% from return inward....so tat we can get the cost of goods returned .......!!!! So add this to 5,40,000 i.e 5,40,000+16,000=5,56,000......!!!! Then nw 5,56,000/.8 = 6,95,000.....!!!!!
Nw plzzz suggest me which one is right approach .......?????
27 November 2012
II nd approach is correct one. Even the Return Inward is to be shown at cost to reflect correct Gross Profit
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Difference between Date of Payment and Date of Deduction?
- Tax Audit Applicability – Newly Formed Partnership Firm with Profit Below 6%/8%
- Unregistered suppliers utility
- ITDS U/S.194T of Firm
- TDS CREDIT MISMATCHING
- Buy back of shares u/s69
- Need Professional Opinion - AY 2012-13 Old Demand & AY 2026-27 Refund Adjustment
- ITR 4 and Bank transactions
- URGENT-Eligible leaves being shown as 24 days for 3 years Articleship instead of 156 days in 108
- FCRA 6 E- Intimation
- RCM @ 5% on Hamali charges, Transport Charges, Unloading charges we take ITC or not
- CALCULATION OF DEFFERED TAX - OP BL IS DTL & CURRET IT DTA
- LLP audit under companies act
- Experienced CA recommendation from Kolkata for FNO return filing
- Interest Reporting in Form 168
- Sales of goods of amount Rs77 lakhs to a party
- Tax Demand of ₹4,650 for AY 2026-27
- Concept of Vendor and customner reconciliation
- Mistake in e-invoice identified after 24 hours
- EXPORT PAYMENT
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
