Gross Profit

Querist : Anonymous (Querist) 09 March 2010 This query is : Resolved
I am in a business of trading in yarn. I purchase the same quantity as I get order. e.g. I have order of 100 bags of yarn and I purchase the 100 bags only. I do not have opening or closing stock.

Do I have to maintain gross profit ratio
or
the gross profit ratio is not applicable to me.

Please guide me.

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Kumar Thadhani (Expert) 09 March 2010
Sir there must profit margin on purchases ?

soumitra basu (Expert) 09 March 2010
The difference between your purchase and sales is your Gross Profit. There is no uniform Gross Profit. You have to substantiate your Profit by Sales Invoice and Purchase Invoice.

Querist : Anonymous (Querist) 11 March 2010
Thanks

O. Mahalakshmi (Expert) 11 March 2010
Sales - Purchases= Gross Profit

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