I’ve newly start a Airtel Distributor with 20 retail points under me. 1. When I’ve ordered 1 lac through NEFT, supplier sent me 104420(variable) in my lapu stock(E-Recharge) sim. 2. Again I’ve to sell the lapu at 3% margin to my retail points i.e. per Rs. 1000, I’ve to transfer 1030 lapu stock. Plz. Explain me these instances.

Correct

Lets consider LAPU as Item L

Hence you received   104420 Pieces Item L at Rs 100000 from Supplier

Purchase price per item =100000/104420=0.95767 (approx)

You pass entry

Purchase A/c Dr  100000

         To Supplier      100000

(104420 units *0.95767/units =100000)

Supplier A/c Dr  100000

        To Bank                100000

(Entry for NEFT to Supplier)

Suppose you sell 1030 units Item L to Retail Point for Rs 1000

Selling Price of Item L=1000/1030=0.970874

You pass entry

Party A/c Dr  1000

       To Bank      1000

(1030 units *0.970874/units =1000)

(Your  profit per LPU is 0.97084-0.95767=0.01317

Profit on 1030 LPU is 1030*0.01317=13.56 Rs

Hence you can say on 1000 Rs sales,you get 13.56 profit)