Given below is the trading, profit and loss account of a… – BBS Taxation in Nepal 2081 Solved

Given below is the trading, profit and loss account of a proprietorship firm:

Particulars	Amount	Particulars	Rs
To Opening stock	210,000	By Sales	4,900,000
To Purchase	2,020,000	By Closing stock	450,000
To Carriage	260,000
To Wages	340,000
To Customs duty	110,000
To Gross profit c/d	2,410,000
Total	5,350,000	Total	5,350,000

To Salary	650,000	By Gross profit b/d	2,410,000
To Office rent	240,000	By Rent from staff quarter	45,000
To General expenses	70,000	By Interest from investment	70,000
To Water and electricity	80,000	By Commission received	10,000
To Legal expenses	15,000	By Sundry receipts	40,000
To Audit expenses	30,000	By Bad debt recovered	60,000
To Promotion expenses	25,000	By Divided received	40,000
To Interest on loan	40,000	By Gain on sale of non business assets	130,000
To Bad debts	30,000	By Gift received relating to business	50,000
To Fine and penalties	10,000
To Provision for tax	30,000
To Life insurance premium (own)	35,000
To Fire insurance premium	20,000
To Donation	80,000
To Pollution control cost	110,000
To Depreciation (Block D)	50,000
To Repair (Block D)	30,000
To Sundry expenses	50,000
To Net profit c/d	1,260,000
Total	2,855,000		2,855,000

Further information:

i. Opening and closing stock were over valued by Rs. 10,000 and Rs. 50,000 respectively.
ii. Purchase include purchase of plant costing Rs. 120,000 which was purchased on 15th Chaitra of previous year and the opening WDV of the plant was Rs. 400,000. A part of plant costing Rs. 80,000 was disposed during the previous year.
iii. Business loss of last year is Rs. 50,000.
iv. Donation was given to private nursing home and public hospital equally.
v. Legal expenses include Rs. 5,000 incurred for domestic purpose.
vi. 30% of bad debt recovered was not allowed previously by Inland Revenue Office.

Required: * i) Net (assessable) income from business

Given below is the trading, profit and loss account of a proprietorship firm: Particulars Amount Particulars Rs To Opening stock 210,000 By Sales…