The profit and loss account presented below of Mr Zaheed's sole tradership business results net income of Tk 700000 for the current accounting year ended on June 30 Compute the income from business of profession for the year considering the given additional information Profit and Loss account Dr Cr Salary Tk 500000 Gross profit Tk 2000000 Commission Tk 25000 Interest on securities Tk 100000 Rent of premises Tk 160000 Interest on bank deposit Tk 25000 Fund embezzlement Tk 25000 Donations Tk 200000 Bad debt Tk 50000 Insurance premium Tk 47000 Depreciation expense Tk 35000 Provision for income tax Tk 45000 Repair expenses Tk 20000 License renewal fee Tk 5000 Penalty and fine Tk 73000 Bonus Tk 100000 Royalty Tk 100000 Interest on bank loan Tk 30000 Household expenses Tk 10000 Net profit Tk 700000 Tk 2125000 Tk 2125000 Other information a Salary includes Tk 130000 paid to an employee during December 01, 2020 to June 30, 2021 who failed to submit return within the tax day nor get extension, b Fund embezzlement occured within office hour, c One fourth of the premise is used as residence by Mr Zaheed, d Donation include Tk 150000 paid to a charitable hospital that is approved by ITO 1984, e Tk 7000 of insurance premium is the payment for policy purchased in the owner's name, f Tax depreciation amounts to Tk 50000 , g Of repair expenses Tk 5000 is spent for the space used for residential purpose, h Commission includes Tk 10000 paid to shareholder director

Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Dec 30, 2021

The profit and loss account presented below of Mr. Zaheed's sole tradership business results net income of Tk.700000/= for the current accounting year ended on

The profit and loss account presented below of Mr. Zaheed's sole tradership business results net income of Tk.700000/= for the current accounting year ended on June 30. Compute the income from business of profession for the year considering the given additional information.

Profit and Loss account

Dr.		Cr.
Salary	Tk.500000	Gross profit	Tk.2000000
Commission	Tk.25000	Interest on securities	Tk.100000
Rent of premises	Tk.160000	Interest on bank deposit	Tk.25000
Fund embezzlement	Tk.25000
Donations	Tk.200000
Bad debt	Tk.50000
Insurance premium	Tk.47000
Depreciation expense	Tk.35000
Provision for income tax	Tk.45000
Repair expenses	Tk.20000
License renewal fee	Tk.5000
Penalty and fine	Tk.73000
Bonus	Tk.100000
Royalty	Tk.100000
Interest on bank loan	Tk.30000
Household expenses	Tk.10000
Net profit	Tk.700000
	Tk.2125000		Tk.2125000

Other information: a. Salary includes Tk.130000/= paid to an employee during December 01, 2020 to June 30, 2021 who failed to submit return within the tax day nor get extension, b. Fund embezzlement occured within office hour, c. One fourth of the premise is used as residence by Mr. Zaheed, d. Donation include Tk.150000/= paid to a charitable hospital that is approved by ITO 1984, e. Tk.7000/= of insurance premium is the payment for policy purchased in the owner's name, f. Tax depreciation amounts to Tk.50000/=, g. Of repair expenses Tk.5000/= is spent for the space used for residential purpose, h. Commission includes Tk.10000/= paid to shareholder director.