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pradeep (Querist)
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25 January 2011 Difference between real profits and fictious profit

pls help with some example to understand the concept

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CA PARAS BAFNA (Expert)
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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.

pradeep

pradeep (Querist)
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27 January 2011 thank u sir

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