How turnover is calculated for a business?

sushil girdher (jto) (50 Points)

17 May 2011  

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