Q. Following information is available about the business of a firm : (i) Profits: In 2020, 40,000; In 2021, 50,000; In 2022, 60,000, (ii) Nonrecurring income of 1,000 is included in the profits of 2021, (iii) Profits of 2020 have been reduced by 6,000 because goods were destroyed by fire, (iv) Goods have not been insured but it is thought to insure them in future. The insurance premium is estimated at 400 per year, (v) Reasonable remuneration of the proprietor of business is 6,000 per year, but it has not been taken into account for calculation of above mentioned profits, (vi) Profits of 2022 include 5,000 income on investment. Q. Following information is available about the business of a firm : (i) Profits: In 2020, 40,000; In 2021, 50,000; In 2022, 60,000, (ii) Nonrecurring income of 1,000 is included in the profits of 2021, (iii) Profits of 2020 have been reduced by 6,000 because goods were destroyed by fire, (iv) Goods have not been insured but it is thought to insure them in future. The insurance premium is estimated at 400 per year, (v) Reasonable remuneration of the proprietor of business is 6,000 per year, but it has not been taken into account for calculation of above mentioned profits, (vi) Profits of 2022 include 5,000 income on investment