Given below is the trading, profit and loss account of a proprietorship organization. Particulars Amount Particulars Amount To Opening stock 425,000…

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

Particulars	Amount	Particulars	Amount
To Opening stock	425,000	By Sales	8,600,000
To Purchase	49,50,000	By Closing stock	400,000
To Carriage on purchase	125,000
To Wages	400,000
To Gross profit c/d	31,00,000
	90,00,000		90,00,000
To Office rent paid	150,000	By Gross profit b/d	31,00,000
To salary	550,000	By Sundry receipts	1,00,000
To General expenses	65,000	By Dividend received	50,000
To Legal expenses	20,000	By Refund of customs duty	50,000
To Local tax paid	50,000	By Bad debt recovered	40,000
To Interest on bank overdraft	30,000	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 Speculation incomes	25,000
To Insurance premium of fixed assets	15,000	By Gain on non-chargeable business assets	100,000
To Pollution control cost	225,000
To Depreciation (Block - D)	50,000
To Membership renewal charges	5,000
To Provision for tax	10,000
To Donation	110,000
To Advance tax paid	20,000
To Drawing by proprietor	30,000
To Net profit	21,35,000
	35,00,000		35,00,000

Further information:

a. Opening and closing stock were undervalued by Rs. 25,000 and Rs. 30,000 respectively.

b. Purchase includes Rs. 250,000, the value plant purchased on Kartik of previous year, beginning depreciation base amount of plant was Rs. 50,000. No part of plant was sold during the previous year.

c. 70% of donation was paid to non-approved institution by Inland Revenue Department and balance paid to TE organization.

d. Sixty percent of bad debts recovered were allowed previously.

e. General expenses include:

a. Rs. 60,000 printing and stationery expenses paid at a time by cash, while banking facility is available within 10 KM.

b. Rs. 5,000 fine paid to the Nepal Electricity Corporation.

f. Loss from business last year stood Rs. 150,000

Required:

a. Net (assessable) Income from business.

b. Statement of total taxable Income.

c. Tax liabilities .