Business profit

482 views
User Avatar

accountant
202 Points Posted on 04 January 2023
1.5 lack itr mein profit show kar sakte hai
1 Reply Share Follow
On 04 January 2023 at 12:47 Report
Replies (12)
Quick Summary
This discussion clarifies how a business can show a profit of 1.5 lakh on a turnover of 16 lakh, which is considered acceptable. It also delves into the fundamentals of manual ledger accounting, explaining the 'To' and 'By' postings by emphasising the importance of understanding transaction nature and applying basic accounting rules like 'debit the receiver, credit the giver'. The conversation touches upon setting net profit by adjusting gross profit and mentions the acceptance of declared income under Section 44AD.

User Avatar

SEO Sai Gr. Hosp.
212503 Points Posted on 04 January 2023

Yes, why not?

But what is the turnover?

1 Reply
On 04 January 2023 at 13:19
User Avatar

accountant
202 Points Posted on 04 January 2023
16 lack
1 Reply
On 04 January 2023 at 13:22
User Avatar

3145 Points Posted on 04 January 2023
@ honourable Dhirajlal sir


while making ledger account in accounting manually a generally the terms " To and " By" is posting , my doubt is whether I should have to know the transactions nature and then posted into to and by,

or

in trial balance debit side items to go credit side

and credit side items are to go debit side


too much of confused this To and By in ledger accounts pls clarify me
Reply
On 04 January 2023 at 13:51
User Avatar

SEO Sai Gr. Hosp.
212503 Points Posted on 04 January 2023

Transaction nature is most important in posting...

You can also remember the thumb rules of accounting ... which helps initially...

  • Debit the receiver and credit the giver. ...
  • Debit what comes in and credit what goes out. ...
  • Debit expenses and losses, credit income and gains.
Reply
On 04 January 2023 at 14:21
User Avatar

SEO Sai Gr. Hosp.
212503 Points Posted on 04 January 2023

For 16 lakhs turnover Rs. 1.50 lakhs profit i.e. around 9.4% is quite acceptable, but follow books for actual data.

Reply
On 04 January 2023 at 14:23
User Avatar

3145 Points Posted on 04 January 2023

@ Honourable Dhirajlal sir , for an example Mr Sanjay is a customer of me  ,he owes from me RS 5 lakh ...so here Sanjay is a sundry debtor ,IAM sundry creditor

                     Sundry creditor ledger account

Dr.                                                   Cr.

To cash /sales xxx              By sundry debtor 5L

 

Iam I right???

 

                 

 

Reply
On 04 January 2023 at 14:42
User Avatar

3145 Points Posted on 04 January 2023

@ Honourable Dhirajlal sir , for an example Mr Sanjay is a customer of me  ,he owes from me RS 5 lakh ...so here Sanjay is a sundry debtor ,IAM sundry creditor

                     Sundry creditor ledger account

Dr.                                                   Cr.

To cash /sales xxx              By sundry debtor 5L

 

Iam I right???

 

                personal account : debit the receiver and credit the giver

 

Reply
On 04 January 2023 at 14:42
User Avatar

SEO Sai Gr. Hosp.
212503 Points Posted on 04 January 2023

Don't confuse your self by trying to read his books..

Just read your books...

He is your customer, you supplied some goods/service for 5 lakhs..

So for you he is just DEBTOR....

Now post your entries whenever you get his payment.. For you its receipt...

In Tally if you fill receipt entry................ it will actually post it as...

Cr. Debtor...

Dr. cash/bank..

 

 

Reply
On 04 January 2023 at 14:49
User Avatar

Profession
28261 Points Posted on 04 January 2023
Yes what's the problem in showing profit to the extent of Rs.1.5 lac.
Reply
On 04 January 2023 at 16:06
User Avatar

accountant
202 Points Posted on 04 January 2023

Dhiraj ji ye actually data hai iski books bani hai kyun ki sir indirect exp bahut hote hai isiliye g.p jyada dikhake n.p set kiya hai g.p se kya to exp hai loss hojayega loss dikha nahi sakte aur g.p badhhake ye n.p set kiya hai 8 % above 44ad

Reply
On 04 January 2023 at 16:33
User Avatar

SEO Sai Gr. Hosp.
212503 Points Posted on 04 January 2023

If you are declaring the income u/s. 44Ad of the act, no problem, it will be accepted.

Reply
On 04 January 2023 at 17:30
User Avatar

Profession
28261 Points Posted on 06 January 2023
As per books and actuals
Reply
On 06 January 2023 at 13:51

Leave a Reply

Post Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Recent Topics :

  1. LTCG on property sale
  2. Capital gains incidence due to bonus shares
  3. Amendment of Object Clause of Memorandum
  4. How Can I Request a Refund for an Accidental Airte
  5. TDS on salary paid in cash
  6. YEAR END GST ENTRY FOR RCM NOT PAID RS 5000 I.E OU
  7. Last Date To Fill ITR For Non-Audit Case
  8. Guidance Required on Filing Fresh Registration und
  9. IT Return Refund Status AY 2026-27
  10. Clarification Regarding Income Tax Demand Notice

More recent discussions | Post

Related Topics :

Loading