Mrs. Barsha is an advocate, maintains her account on a cash basis furnished the following statement for the year end 31st Ashadh. Receipts and…
2025 · Solved Question with Answer
Mrs. Barsha is an advocate, maintains her account on a cash basis furnished the following statement for the year end 31st Ashadh.
| Receipts and Payments Account | Rs. | Payments | Rs. |
| To Balance b/d | 25,000 | By Office expenses | 40,000 |
| To Legal fees | 256,000 | By Office rent | 60,000 |
| To Consultation fees | 52,400 | By Telephone expenses | 6,000 |
| To Lottery income(net) | 7,000 | By Interest on bank loan | 25,000 |
| To Dividend (net) | 5,700 | By Membership subscription | 2,000 |
| To Interest from Bank (net) | 21,500 | By Electricity charges | 8,000 |
| To Sundry incomes | 37,400 | By Newspaper expenses | 6,500 |
| To Gift from clients | 20,000 | By Donation | 40,000 |
| To Birthday Gifts received | 5,000 | By Car expenses | 10,000 |
| By Premium of life insurance (own) | 30,000 | ||
| By Balance c/d | 202,000 | ||
| Total | 430,000 | Total | 430,000 |
Additional information:
1 ) Legal fees include Rs 56,000 relating to two years ago.
2) Allowable depreciation Rs 30,000.
3) Office expenses included Rs. 10,000 paid for household servant.
4) Outstanding salary Rs 20,000 is yet to be paid.
5) Electricity and telephone expenses is used equally for profession and domestic purpose.
Required:
a. Net assessable income profession
b. Statement of taxable income