Shortage in th Gross Profit Ratio
This query is : Resolved
16 August 2010
Sir I'm doing Audit of a trading firm where the Gp is around 4-5 %...
By making Comparative I came to know this year Gp has Fallen to 3.75% against previous year of 4.5%...
The ratio of purchases to sales was similar 96%.. but Closing Stock to Sales have Fallen from 4% to 2.5%...
Then I made a diff. Trading A/c for all the Components where I came to know about the food Products which are showing only .75% Gp to sales.
So plz tell what could be the matter in this case... Plz tell all other alternatives that I can do...
Thanx in Advance..
Plz reply.. U can ask other things also in relation to this
By making Comparative I came to know this year Gp has Fallen to 3.75% against previous year of 4.5%...
The ratio of purchases to sales was similar 96%.. but Closing Stock to Sales have Fallen from 4% to 2.5%...
Then I made a diff. Trading A/c for all the Components where I came to know about the food Products which are showing only .75% Gp to sales.
So plz tell what could be the matter in this case... Plz tell all other alternatives that I can do...
Thanx in Advance..
Plz reply.. U can ask other things also in relation to this
16 August 2010
I also checked the margin of Food Products Sales & Purchase.. It was coming 5% but not in Books
16 August 2010
Plz reply
16 August 2010
Did u enquire into any possible reasons for the falling GPR? Discounted sales, increase in RM cost, etc?
To answer the question mathematically, pls also let me know what was ratio of opening stock to Sales. If the ratio of opening stock to sales was same as PY, then, the GP ratio could come down due to better stock management as you mentioned. Also let me know the ratio of closing stock to opening stock.
To answer the question mathematically, pls also let me know what was ratio of opening stock to Sales. If the ratio of opening stock to sales was same as PY, then, the GP ratio could come down due to better stock management as you mentioned. Also let me know the ratio of closing stock to opening stock.
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
- GSTR-1A How to update Invoice
- Excess salary payment.
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- Stamp Paper for partnership firm change new income tax 2025
- TDS on Purchase of Immovable Property by NRI from NRI
- Copyright software
- SFT Cash Deposit in Current Account
- Regarding TDS Applicability For Director Remuneration
- GST Treatment of Insurance Commission for Existing GST Holder
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
- Address Change to another state of a Registered Trust with 12AB approval
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
