how to calculate 8%profit in partnership firm for audit ?

1. As per sec 44AD, 8% on the entire gross receipts or T.O will be considered as profit. Now with respect to Gross receipts or T.O entire amount received in relation to business need to be considered for the purpose of sec 44AD. 
2. However there is no specific explanation given for gross receipts or T.O, it should be computed based on your receipts made during the year or T.O achieved by the firm. 
Please correct me if the above solution has an alternative view.