(a) Following are the details of the fixed assets of XYZ Company. Beginning written down value block - C Rs. 400,000 Beginning written down value…
BBS Taxation in Nepal · 2080 · Solved Question with Answer
(a) Following are the details of the fixed assets of XYZ Company.
Beginning written down value block - C Rs. 400,000
Beginning written down value block - D Rs. 500,000
The company has purchased a new plant & machinery as on 10th Baishakh, Rs. 600,000
The company has also purchased two second hand maruti cars on 1st Bhadra, worth Rs. 300,000 each.
Repair and maintenance cost incurred during the year under block D Rs. 80,000 and Block C for Rs. 60,000.
During the year company has sold a small part of plant and machinery having book value. Rs. 90,000 sold for Rs. 100,000.
Required:
a. Allowable depreciation
b. Value of fixed asset at the end of the fiscal year.
(b) Following are the profit and loss position of a businessman for the previous income year :
| Years | Profit or (Loss) |
| 1 | (200,000) |
| 2 | (200,000) |
| 3 | (50,000) |
| 4 | (50,000) |
| 5 | 100,000 |
| 6 | (50,000) |
| 7 | 20,000 |
| 8 | 70,000 |
| 9 | 400,000 |
Additional information
a. On scrutiny, it revealed that profit of 6th year was derived after deducting donation Rs. 20,000 to tax exempt entity
b. Profit of the 9th year was derived before deducting research and development cost Rs. 70,000.
Required: Taxable income giving explanation wherever is necessary.