Tax
This query is : Resolved
25 January 2011
Difference between real profits and fictious profit
pls help with some example to understand the concept
pls help with some example to understand the concept
CA PARAS BAFNA
(Expert)
26 January 2011
Example:
Purchased 100 Boxes...@100....10000
Sold 80 Boxes @ 110..... 8800
Cost of Sale @ 100...... 8000
*
Profit..(Real)........... 800
*
Profit likely to arise on stock of 20 taking the same sale rate of 110... 10*20=200
If you account for this also then it is
not real profit. It is fictitious profit.
Purchased 100 Boxes...@100....10000
Sold 80 Boxes @ 110..... 8800
Cost of Sale @ 100...... 8000
*
Profit..(Real)........... 800
*
Profit likely to arise on stock of 20 taking the same sale rate of 110... 10*20=200
If you account for this also then it is
not real profit. It is fictitious profit.
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