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(a) Following are the details of the fixed assets of proprietorship organization: Particulars Block C Block D Beginning WDV 1,000,000 1,000,000 New…

BBS Taxation in Nepal · 2082 · Solved Question with Answer

(a) Following are the details of the fixed assets of proprietorship organization:

Particulars Block C Block D
Beginning WDV 1,000,000 1,000,000
New addition during the year:
Toyota Car purchased on 21st Mangsir 400,000
Purchase of plant on 20th Chaitra 180,000
Second hand Maruti car purchased on 15th Baishakh 600,000
Repairs and maintenance during the year 80,000 80,000
Disposal of the parts of plant and machinery written down value Rs. 150,000 disposed of Rs. 120,000

Required:

a. Allowable repairs and depreciation

b. Written down value of fixed assets at the end of fiscal year.

(b) Following are the profit and loss position of a trader for the previous income year:

Years Profit or (Loss)
1 (260,000)
2 (140,000)
3 (50,000)
4 (50,000)
5 100,000
6 (50,000)
7 120,000
8 110,000
9 800,000

a. On scrutiny, it revealed that profit of 6th year was derived after deducting donation Rs. 50,000 to tax exempt entity.

Required: Taxable income of the firm giving explanation wherever necessary.

Solution

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