Turnover for Form 3CD Rations

This query is : Resolved

VIPIN GUPTA (Querist)
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12 January 2021 One of our client is in the business of Future and options . We have prepared his Trading account as per our ICAI Guide lines. Positive profit on Credit Side and Loss on Debit side. and difference is Profit from FNO. Now going for ratios to be calculated in form 3CD in Gross profit ratio. What sales we shoud take.
1. Should we take total of Positive and Negatives or only Positive Figure as turnover.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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12 January 2021 Take total of Positive and Negatives Figure as turnover.

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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13 January 2021 No need to prepare TRADING a/c since there is no purchase and sales in F and O transactions.

Need to prepare PROFIT and LOSS a/c only.

In view of the above, no need of G.P ratio.

P.S:- calculation of absolute value is ONLY to check 44AB applicability.

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