Zeal Manufacturer Company, Tax year 31 Dec 2020. 15500000 150000 5500000 755000 60000 Salaries 8200000 Gross profit Postage exp 400000 Premium on issuing of shares Cost of issuing of debentures 1100000 Gain on sale of Plot Interest on debentures 450000 Rent from Property (A) Utility bills 350000 Gain on sale of Private Co Shares Business registration expenses 255000 Contribution in providend fund 320000 Reserve for graduity 100000 Un adjustable advance 250000 Donation to Approved institute 150000 Fine on violation of Laws 80000 Machinary Purchased 1000000 Installation of machinary 150,000 Legal Charges 180000 Bad debts 360000 Income Tax Paid in Advance 185000 Advertisement expenses 450000 Depreciation 480000 Legal Charges 85000 Office rent 760000 Stationary charges 75000 Repairing expenses of property (A) 370000 Travelling expenses 55000 Employee training expenses 175000 Net profit 5985000 21965000 Additional Information: 1- A debt of 250,000, previously written off was recovered this year. 2- Statutary depreciation was 35% less than the claimed one. 3- 2/3rd of Advertisement exp were related to trial production of new product. 4- Travelling exp were made to collect the rent of property. 5- Plot was sold after 2 years. 6- Shares were sold after one year. 7- Machinary was purchased in Mid March , was sold at year end for 750,000 21965000 Zeal Manufacturer Company, Tax year 31 Dec 2020. 15500000 150000 5500000 755000 60000 Salaries 8200000 Gross profit Postage exp 400000 Premium on issuing of shares Cost of issuing of debentures 1100000 Gain on sale of Plot Interest on debentures 450000 Rent from Property (A) Utility bills 350000 Gain on sale of Private Co Shares Business registration expenses 255000 Contribution in providend fund 320000 Reserve for graduity 100000 Un adjustable advance 250000 Donation to Approved institute 150000 Fine on violation of Laws 80000 Machinary Purchased 1000000 Installation of machinary 150,000 Legal Charges 180000 Bad debts 360000 Income Tax Paid in Advance 185000 Advertisement expenses 450000 Depreciation 480000 Legal Charges 85000 Office rent 760000 Stationary charges 75000 Repairing expenses of property (A) 370000 Travelling expenses 55000 Employee training expenses 175000 Net profit 5985000 21965000 Additional Information: 1- A debt of 250,000, previously written off was recovered this year. 2- Statutary depreciation was 35% less than the claimed one. 3- 2/3rd of Advertisement exp were related to trial production of new product. 4- Travelling exp were made to collect the rent of property. 5- Plot was sold after 2 years. 6- Shares were sold after one year. 7- Machinary was purchased in Mid March , was sold at year end for 750,000 21965000