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Insurance claim on profits nd loss ac

Accountancy

When gross profit during 2012 was expected to decline by 2 % on sales by how much percent we should decrease from short sales nd annual turnover ?

Sachin M

CA Inter

★ 280

17-Feb-20 20:24

425

Answers (7)

I think,There is no reduction in sales n turnover.they just said decline in GP rate@2%(on sales basis said bcoz ,if don't they don't tell anything means we may get doubt on what basis whether on cash/sales basis). Short sales*(existing GP-2%)

Divya tejasri

CA Inter

★ 13K+

17-Feb-20 22:14

Divya tejasri

Okay. See what they have done in illustrations. .if u can pls explain ...they r considering it as 20 % drop in sales

Thread Starter

Sachin M

CA Inter

★ 280

17-Feb-20 22:29

Pls absorb the decrease in sales .i.e,compare the sales 1-1-2001 to 30-4-2001 with 1-1-2002 300k-240k=60k,60k/300*100=20% na like that asborb the decrease in trend

Divya tejasri

CA Inter

★ 13K+

18-Feb-20 10:26

Divya tejasri

Pls absorb the decrease in sales .i.e,compare the sales 1-1-2001 to 30-4-2001 with 1-1-2002 300k-240k=60k,60k/300*100=20% na like that asborb the decrease in trend

Sry,1-1-2001 to 30-4-2001with1-1-2002 to 30-04-2002

Divya tejasri

CA Inter

★ 13K+

18-Feb-20 10:29

Always they don't tell us that there's a decrease in trend % but gives the information of decrease in trend of sales that is what we have to absorb and take the %

Divya tejasri

CA Inter

★ 13K+

18-Feb-20 10:36

Divya tejasri

Always they don't tell us that there's a decrease in trend % but gives the information of decrease in trend of sales that is what we have to absorb and take the %

Nicely answered Divya! Keep it up!