Given below is the trading, profit and loss account of a… – BBS Taxation in Nepal 2079 Solved

Given below is the trading, profit and loss account of a sole trade organization for the previous income year.

Particulars	Amount	Particulars	Amount
To Opening stock	50,000	By Sales	5,200,000
To Purchase	3,050,000	By Closing stock	300,000
To Carriage on purchase	30,000
To Wages	170,000
To Gross profit c/d	2,200,000
Total	5,500,000	Total	5,500,000

To Office rent paid	50,000	By Gross profit b/d	2,200,000
To salary	250,000	By Other receipts	40,000
To General expenses	80,000	By Dividend received	10,000
To Legal expenses	20,000	By Refund of custom duty	30,000
To Staff welfare expenses	120,000	By Bad debt recovered	40,000
To interest on bank loan	130,000	By Sales of scraps	10,000
To Fine and penalties	10,000	By Rent from staff quarter	20,000
To Life insurance premium (own)	30,000	By Gain on non - chargeable business assets	30,000
To insurance premium of fixed assets	20,000	By Gain on sales of business assets	20,000
To pollution control cost	50,000
To depreciation of fixed assets	50,000
To Membership renewal charges	10,000
To provision for dividend	10,000
To Donation to tax exempt entity	20,000
To Advance income tax paid	20,000
To Drawing by proprietor	30,000
To Net profit	1,500,000
Total	2,400,000	Total	2,400,000

Further information:

a. Closing stock was undervalued by Rs. 10,000.
b. Purchase include purchase of sofa set of Rs. 50,000.
c. Legal expense include Rs.10,000 penalty paid to Nepal Tele-communication.
d. 40% of donation was given to a private school and rest was given to public school.
e. Seventy percent of bad debts recovered were allowed previously.
f. Allowable depreciation of all fixed assets Rs. 40,000.
g. Unabsorbed business loss of last year stood Rs. 50,000.

Required:

Given below is the trading, profit and loss account of a sole trade organization for the previous income year. Particulars Amount Particulars Amount…