(a) SS Trades provided the following details of its fixed assets under block B and C. Particulars Block 'B' (Rs.) Block 'C' (Rs.) Opening WDV 400,000…
BBS Taxation in Nepal · 2081 · Solved Question with Answer
(a) SS Trades provided the following details of its fixed assets under block B and C.
| Particulars | Block 'B' (Rs.) | Block 'C' (Rs.) |
| Opening WDV | 400,000 | 900,000 |
| New addition of assets during the year | ||
| on $1^{\text{st}}$ Ashwin | 150,000 | 0 |
| on $1^{\text{st}}$ Falgun | 300,000 | 300,000 |
| on $21^{\text{st}}$ Baishakh | 0 | 600,000 |
| Assets disposed off during the year | 50,000 | 100,000 |
| Repair and improvement cost during the year | 40,000 | 90,000 |
Required:
(i) Allowable depreciation
(ii) Closing value of fixed asset of the year
(b) The operating results of a company are provided:
| Year | 6 | 7 | 8 | 9 | 10 |
| Profit/loss (Rs) | 30,000 | 100,000 | 150,000 | 200,000 | 120,000 |
The company has incurred loss in its 2nd year of operations. The unrecovered loss of 2ndyear, 3rd year, \( 4^{th} \) year and 5th year is Rs. 30,000, Rs. 40,000, Rs. 50,000 and Rs. 60,000 respectively. The profit of the 6th year is derived without deducting interest on bank loan Rs. 20,000 and profit of the 7th year is derived without adding commission income Rs. 10,000. In year 9, profit was calculated after deducting donation to PADT Rs. 100,000 and the profit of 7th year was ascertained deducting pollution control cost of Rs. 300,000. Required: Taxable income and explanation wherever necessary.