For an example ,Mrs Lakshmi Lal Jain was a Small trader , she asked me to prepare the trading account she gives the following details of items regarding her trade details
1. opening stock 15 lakh
2. purchases. 3.5 lakh
3. sales. 20 lakh
only these three items details available from her books
QUERY:
1. now having with these three items how to find out the closing stock and gross profit??? I need formula explanation
2. actually gross profit is how it is calculated in this scenario how we can find out gross profit and closing stock also
Help me
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Trading account Original Accounting Rules ( Help me)
Replies (3)
Quick Summary
Either asked Me Laxmi lal about his Gross profit ratio or verify stock to get actual value
@ Respected Rashmi Gandhi mam , Actually in our Audit point of you how to find out closing stock? some people's told me
opening+ purchases- sales= closing stock..
then, opening +purchases+ gross profit - sales= closing stock
which is professional correct??
Gross profit how to find out mam??
kindly clarify me
opening+ purchases- sales= closing stock..
then, opening +purchases+ gross profit - sales= closing stock
which is professional correct??
Gross profit how to find out mam??
kindly clarify me
You can either physically verify the closing stock and value it. Also you get the GP rate from last year.
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