Can you please

Rashmi (Accountant) (140 Points)

27 February 2013  

 

Hi,

A proprietorship firm, by nature contractor, turnover for a.y.13-14 is less than 3 corer for last three quarter, but maximum amount used for personal use as drawings, like as under

Labour + material Sales          :                                               30000000/-

Labour+ material payment (pur)    :                                               20000000/-

Business Expenses                   :                                               2500000/-

Personal use expenses            :                                               7000000/-

Profit                                              :                                               500000/-

Above calculation according to their internal Auditor, but when it assigned to our company we have calculated as under

Labour + material Sales          :                                               30000000/-

Labour+ material payment     :                                               20000000/-

Business Expenses                   :                                               2500000/-

Profit before tax                    :                                               7500000/-

Less Interest                            :                                               0.00

Net Profit                                :                                               7500000/-

But they are not ready to accept our calculation,

Could you please help me whose calculation is right.

Regards

Rashmi