Given below is the Profit and Loss Statement of Tri-Star Company Limited for the tax year ended on June 30, 2020. Rs. Rs. Office Salaries 200,000 Gross Profit 623,000 Sundry Expenses 10,000 Premium on Issuance of Debenture 19,600 Contribution: Provident Fund 35,000 Capital Gain on Sale of Shares 10,000 Advertisement Expenses 50,000 Dividend Income 15,000 Auditor's Fee 10,000 Bad Debt Recovered 18,000 Legal Charges 12,000 Profit on Govt. Securities 5,400 Insurance Premium 9,000 Agriculture Income 250,000 Cost of Issuance of 70,000 debenture Interest on Debentures 45,000 Loss of embezzlement 15,600 Rates & Taxes 145,000 Bad Debt Expenses 25,000 Capital Value Tax 15,000 Depreciation Expenses 45,500 Advance Income Tax 15,200 Net Profit 238,700 941,000 941,000 The following further information is provided: a) Sales and purchases are verified, therefore the declared gross profit is liable to be accepted. b) Embezzlement loss is on account of theft committed by an employee who breaks into cashier room after office hours. (Not allowed by FBR) c) Depreciation Expense allowed by FBR amounts to Rs 15,500. d) Rates and Taxes include Rs 25,000 as sales tax on Internet bill and Rs 50,000 as donation to local Govt. hospital u/s 61. e) Capital Value tax paid on purchase of some land in the Karachi city. f) Capital Gain relates to shares of private limited company sold after 12 months of its acquisition. g) Commissioner Income Tax has only approved Rs 8,500 as bad debt in current tax year. h) Company operates recognized provident fund. i) Bad Debt recovered were not allowed by Commissioner Income Tax in the past. j) Profit on Govt. securities and Dividend Income is after deduction of tax @ 15%.