Question

c) Shukla and sons Ltd. grows rice on their lands. Details for the previous year
2019-20 are as follows:
i) Cost of cultivation of rice (5,000 tons) 10 lakhs
ii) Rice sold in market (1,000 tons) at a price of total 3 lakhs
iii) Rice used at his Rice Mill for business (4.000 tons)
iv) Cost incurred at Rice Mill is 5 lakhs
v) Rice furnished at Rice Mill 85 sold in market 25 lakhs
Compute income of Shukla and sons Ltd. from agricultural resources only for the
assessment year 2020-21​

Answer 1

Income from Agricultural resources (Net income) = income from the sale of rice in the market + income from the Rice Mill - cost of cultivation - cost incurred at the Rice Mill.

To Find:

to compute the income of Shukla and Sons Ltd. from agricultural resources only for the assessment year 2020-21.

Given:

• Cost of cultivation of rice (5,000 tons) 10 lakhs
• Rice sold in market (1,000 tons) at a price of total 3 lakhs
• Rice used at his Rice Mill for business (4,000 tons)
• Cost incurred at Rice Mill is 5 lakhs
• Rice furnished at Rice Mill 85 sold in market 25 lakhs

Solution:

To calculate the income of Shukla and Sons Ltd. from agricultural resources for the assessment year 2020-21, we need to consider the following information provided:

i) Cost of cultivation of rice (5,000 tons) 10 lakhs

ii) Rice sold in market (1,000 tons) at a price of total 3 lakhs

iii) Rice used at his Rice Mill for business (4.000 tons)

iv) Cost incurred at Rice Mill is 5 lakhs

v) Rice furnished at Rice Mill 85 sold in market 25 lakhs

Income from Rice Sold in the Market:

The income from the sale of rice in the market would be the total revenue earned from the sale, which is (1,000 tons x 3 lakhs) = 3 lakhs

Income from Rice Mill:

The income from the Rice Mill would be the total revenue earned from the sale of rice furnished at the Rice Mill, which is (85 x 25 lakhs) = 21.25 lakhs

Income from Agricultural Resources:

The income from agricultural resources would be the sum of income from the sale of rice in the market and income from the Rice Mill, which is 3 lakhs + 21.25 lakhs = 24.25 lakhs

To calculate the final answer, we need to subtract the cost of cultivation and the cost incurred at the Rice Mill from the sum of income from the sale of rice in the market and income from the Rice Mill.

#SPJ1

So, the final answer would be:

So, the final answer would be:Income from Agricultural resources (Net income) = income from the sale of rice in the market + income from the Rice Mill - cost of cultivation - cost incurred at the Rice Mill.

It is not possible to provide the final answer without knowing the cost of cultivation and cost incurred at the Rice Mill.