1.35.000 From the following P&L account, compute income from business: PROFIT AND LOSS ACCOUNT To Salaries 14.600 By Gp To household expense 2000 To income tax 900 To Gifts 900 To business expense 2,200 To LIC premium 2.100 To bad debt reserve 800 To N/P 1.11.500 1,35.000 1,35,000 Computation of income from business for the A Y 2013-14 Net Profit as pe P&L Account : 1.11.500 Add: Expenses Disallowed: Household expenses 2.000 Income tax 900 900 LIC Premium 2,100 Bad debt reserve 800 6,700 Income from business s36 Gift 1.18,200 Illustration:3 Dr. Biju is a medical practitioner in Mahe. From the following, calculate his income from profession for the AY 2013-14: Gross receipt from dispensary 2,35.000 Gross receipt from consultation 1,65.000 Operation fee 2.50.000 Visiting fee 50.000 Gifts from patients 30.000 Medicines purchased 1,25,000 Closing stock of medicines 35,000 Salaries paid to employees 1.50,000 Surgical equipments purchased 48.000 Dr. Biju wanted to attend a medical seminar in Australia to update 25,000 the knowledge and spent an amount of Medical books purchased 20,000 He owns a house whose MRV is Rs:50,000. Half portion of the house is used for profession. Expenses paid on house are municipal tax=30% of MRV : Repairs Rs:10,000, and renovation expenses Rs:30,000