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How turnover is calculated for a business?

Others 1594 views 2 replies

Dear Friends

I am an engineer by profession and accountancy and finance are very intresting topics for me...i need ur help as i m a new in this area.

Suppose i am having a business of sale of LAPTOPs .

Suppose i purchase 20 laptops from a company @ 20000/- each so that my total purchase is Rs 4 Lakh

Suppose i sale each of these 20 laptops @ 25000/- so that my total sale is Rs 5 Lakh

In this case my profit is Rs 1 Lakh and there will be certail expenses also

WHAT WILL BE MY TURNOVER IN THIS CASE? Will it be equal to sale price or sale+purchase price?

means my turnover is Rs 5 lakh or Rs 9 lakh  or anything else....

Are there any expenses to be deducted from turnover

and what are the documnets legally required to prove my turnover

pls reply at sushil @ girdher.com i shall be highgly obliged

Replies (2)

Turn over is 5 lacs Documents needed to prove are your valid sales Invoice

Your Business expenses are eligible for deduction from Your Total Profit of Rs 1 lakh namely your selling expenses and other administrative expenses 

your turnover is 5 lacs

total turnover= cash sales + credit sales

( we will not consider purchase in our turnover.)


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