Different Types of Purchase

Transcript

Different Types of Business Shopkeeper Manufacturer Service Provider Example Cloth Shop Example Cloth Factory Example Tailor Suppose We Open A Cloth Shop Buy Clothes 50000 Sold Clothes 60000 Electricity Bill 4000 What is Purchase, Sale & Profit ? Sale 60000 Purchase 50000 Electricity bill 4000 Total Expense 54000 Profit 6000(Expense) Suppose we open a Cloth Factory Buy Cotton 80000 Sold Clothes 100000 Electricity Bill 10000 What is Purchase, Sale & Profit ? Sale 100000 Purchase 80000 Electricity bill 10000 Total Expense 90000 Profit 10000(Expense) In this case Purchase & sale items are different. We Purchased cotton & manufactured clothesSuppose we open a Tailor Shop Service Charges 5000 Electricity Bill 1000 What is Purchase, Sale & Profit ? Service charge 5000 Electricity bill 1000 Total Expense 1000 Profit 4000(Expense) (Income-Expense) In this case no Purchase & Sale Only Service Provided (Stitching of Clothes)Difference Between Shopkeeper And ManufacturerShopkeeper Example:-Cloth shop In cloth shop we buy clothes from whole seller & sale clothes to customer. Purchase Goods for re-sale Manufacturer Example:-Cloth factory In Cloth factory we purchase cotton from vendor, manufacture clothes & sale clothes to customer Purchase Goods for Manufacturing. Purchase refers to the purchase of goods for resale or for use in manufacturing.Summary Purchase : It is the transaction involving exchange of money to obtain goods for Re-sale or Manufacturing Manufacturer :- Manufacturer purchase raw material and sells finished products Shopkeeper :- Shopkeeper purchase from whole sellers or manufacturers and sell these goods to customers for final consumption of products. Service Provider :- Service Provider do not buy or sell commodity They just take their service charges for the services provided