Question

10 Iran ITICOMIC
uus w
Rs.
2,000
11. w16. Profit and Loss Account for the year ended on 31-3- 15 BI
Mr. Hitenkumar is as under. Compute luis taxable income from Business and Profession.
Credit
Rs.
Debit
5,64,000
Tc Depreciation
By Gross Profit
8.000
23,000
Salary
Profit from the sale of Land
1,50,000
Prize from Horse-race
2,000
Subscription
16,000
Birth-day gift
21.000
Taxi-Rent -
7,000
Bad debt reserve
3,000 Bad debt recovered a
5,000
Fitting charge of machine 5,000 | " Bank interest
Exps. to raise loan
1,000
Legal expenses
- 4,000
Sales-tax
10.000
Purchase of stationery 15,000
Loss due to theft
10.000
> Net Profit
4,21,000
6,36,000
6.36.000
Additional Informations :
(1) Taxi-rent includes Rs. 3,000 for the Travelling Expenses of his family,
(2) 30% of the sales-tax debited is still unpaid.
(3) A cycle costing Rs. 3,000 and Diamond (stock-in-trade) costing Rs. 7,000 are
stolen by a worker. This loss is debited to P/L A/c as theft.
(4) The closing stock of un-used stationery is Rs. 2,000.
(5) Bad debt recovered includes Rs. 3,000 which is not allowed as bad debt.
(6) Allowable amount of depreciation is Rs. 10,000.
(7) Audit free Rs. 2,000 is not recorded in the books. (GU. - Modified)
Ans. : Taxable business profit Rs. 3,66,000
Note : Start with the reported net runfir nt'
A
IDAA​

Answer 1

Answer:

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