Question

7. A and B are active partners and C and D are sleeping partners n a firm.
The Profit & profit Loss Account drawn for the year ending 31 March,
2018 shows a profit of Rs. 1,00,000. The profit has been arrived at after
allowing salary and interest to partners as follows:
(Rs.)
(Rs.)
Salary
Interest@12%
(Rs.)
1,00,000
8,000
(Rs.)
92,000
16,000
24,000
12,000
Further the long-term capital gains of the firm are Rs. 80,000. The
partner's shares in profit and loss are equal.
You are required to compute the total income of the firm and its
taxability.​

Answer 1

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