Given below is the trading, profit and loss account of a proprietorship organization: Particulars Amount Particulars Amount To Opening stock 25,000…

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

Particulars	Amount	Particulars	Amount
To Opening stock	25,000	By Sales	5,000,000
To Purchase	2,000,000	By Closing stock	300,000
To Carriage on purchase	25,000
To Wages	175,000
To Gross profit c/d	2,225,000
	5,300,000		5,300,000
To Office rent paid	50,000	By Gross profit b/d	2,225,000
To Salary	250,000	By Sundry incomes	50,000
To General expenses	65,000	By Dividend received	5,000
To Legal expenses	20,000	By Refund of custom duty	45,000
To Staff welfare expenses	125,000	By Bad debt recovered	40,000
To Interest on bank loan	130,000	By Agriculture income	10,000
To Fine and penalties	5,000	By Rent from staff quarter	25,000
To Life insurance premium (own)	30,000	By Gain on non - chargeable business assets	50,000
To insurance premium of fixed assets	15,000	By Gain on foreign exchange	25,000
To Research and development cost	50,000
To Depreciation	50,000
To Membership renewal charges	5,000
To provision for tax	10,000
To Donation	20,000
To Advance tax paid	20,000

To Drawing	30,000
To Net profit	1,600,000
Total	2,475,000	Total	2,475,000

Further information:

a. Closing stock was undervalued by Rs. 10,000.

b. Closing stock was valued Rs. 30,000 on last stock taking, however, it was not shown on the opening date.

c. Legal expenses include Rs. 5,000 for income tax penalty.

d. 60% of donation was given to a private hospital and rest was given to tax exempt organization.

e. Seventy percent of bad debts recovered were allowed previously.

f. Allowable repairs and depreciation were Rs. 30,000 and Rs. 40,000 respectively.

g. Unabsorbed business loss of last year stood Rs. 50,000.

Required:

a. Net (assessable) income from business.

b. Statement of total taxable Income

c. Tax liabilities