Following is the summarized statement of cash concerning class 'B' registered auditor for the previous year. Receipts and payments Account Receipts…
2024 · Solved Question with Answer
Following is the summarized statement of cash concerning class 'B' registered auditor for the previous year.
Receipts and payments Account
| Receipts | Rs. | Payments | Rs. |
| To Balance b/d | 40,000 | By Office expenses | 100,000 |
| To Consultation fees | 280,000 | By Office rent | 72,000 |
| To Audit fees | 350,000 | By Salary to assistant | 84,000 |
| To Interest from bank deposit (net) | 28,500 | By Life insurance premium (self) | 16,000 |
| To Income from writing article | 27,000 | By Household expenses | 42,000 |
| To Interest on investment | 40,000 | By water and electricity expenses | 50,000 |
| By Balance c/d | 421,000 | ||
| To Sale of old newspaper | 2,000 | ||
| To Dividend from resident Co. | 17,500 | ||
| Total | 785,000 | Total | 785,000 |
Additional information:
➤ Consultation fees include Rs 25,000 relating to next year.
➤ Audit fees include Rs 40,000 related to previous year.
➤ Water and electricity expenses is equally used for office and personal purpose.
➤ Allowable depreciation of fixed assets Rs 10,000.
Required:
(a) Net assessable income profession
(b) Statement of taxable income