Shortage in th Gross Profit Ratio
This query is : Resolved
MANI GUPTA
(Querist)
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
MANI GUPTA
(Querist)
16 August 2010
I also checked the margin of Food Products Sales & Purchase.. It was coming 5% but not in Books
MANI GUPTA
(Querist)
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
- Accounting treatment of AMC alongwith the purchase of Laptop
- Condonation Request sec 119(2) b -Enhancement Limit of Leave Exemption prior to AY 2023
- Unable to File TDS Q2 Return – New TRACES Portal Error
- Issuing of delivery challan by seller of goods
- Transfer of Physical Stock Between Two Proprietorship Concerns
- GST Treatment of Purchases with GST Paid where Outward Supplies of Manufactured CattleFeed Exempt
- Taxation of crypto futures in India Fy 2026- 2027
- Not ordinarily resident having partnership income in India and salary in USA is any form to filed be
- EPF ECR NEW RULES Sep 17th 2026
- Expert Help Required for TDS Refund 100000 Through TRACES – AY 2022–23
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
- Guidance Needed: Linking Multiple Form 26QB Payments and Responding to ITD Defaulter Notice
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
