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Following was the draft of statement of profits & loss of Subhash & Co. on 31st March, 2014. To salaries 60,000 By Gross profit 3,00,000 To manager's salary 8,000 To Director's fees 4,000 To depreciation 40,000 To general charges 42,000 To general 30,000 To Interest on Debentures 15,000 To Taxation 70,000 To Net Profit 31,000 3,00,000 3,00,000 All the expenses are allowable for taxation calculate income tax on company's profit @ 40%. The annual salary of the manager of this company is 5 8,000. He also gets 3% commission on divisible profit arrived at after deducting taxation but before salary depreciation includes 10,000 for development rebate. Find out manager's commission and income tax. Sudhir Ltd. is incorporated on 1st August, 2013. From Ist April, 2013 it purchased the business of Susheel Ltd. for 8,00,000 out of which 6,40,000 was paid by fully paid equity shares and balance was paid in cash company also issued equity shares of 6,00,000 for cash to Public Stock of 80,000 machinery of 6,00,000 and debtors of 50,000 are acquired from vendor. Purchasing company installed a new machine of 7 40,000. During the year 2013-14. Total cash sales were 20,00,000. The sales per month in the first half of the year were half of what they were in the latter half year. The net profit of the company after charging the following expenses was * 1,80,000. Director's fees *40,000. Office Expenses 15,000 Preliminary Expenses 13,000 Depreciation 72,000. Selling expenses * 36,000 Interest to vendors upto 31st August, 2013 is * 4,000 closing stock is valued at *80,000. Find out profit before and after incorporation and prepare a B/S of the purchasing company as at 31st March, 2014