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IT Problem 1 2

The document provides a profit and loss account for Mr. Harish with revenues, expenses, and net profit listed. It also includes additional information like cash purchases, an advertisement expense, sales tax paid the next year, actual bad debts, and an expense drawn by the assessee.

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78 views1 page

IT Problem 1 2

The document provides a profit and loss account for Mr. Harish with revenues, expenses, and net profit listed. It also includes additional information like cash purchases, an advertisement expense, sales tax paid the next year, actual bad debts, and an expense drawn by the assessee.

Uploaded by

hanumanthaiahgowda
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1. Following is the Profit and Loss Account of Mr. Harish. Compute his Gross Total Income.

₹ ₹
To Purchases 6,28,000 By Sales 58,07,500
To Salaries and Wages 2,00,000 By interest on FD 10,500
To Rent 1,20,000 By Bad debts recovered
To Advertisement 3,00,000 (not allowed earlier) 20,000
To Travelling exps 2,00,000 By Refund of Income tax 30,000
To Bad debts 52,000 By Interest on Income
To General Expsenses 3,00,000 tax refund 3,000
To Provision for Taxation 3,00,000 By Rent received 80,000
To Addition to office building 3,00,000 By Winnings from
To Fines and Penalties 1,00,000 lottery (net) -49,000
To Sales Tax paid 2,50,000 By profit on sale of
To Income tax paid 1,50,000 Shares (Long term) 2,00,000
To Net profit 34,00,000 By Dividend from
Infosys Ltd. 1,00,000
63,00,000 63,00,000
Additional Information;
a) Purchases include ₹ 30,000 paid in cash.
b) Advertisement expenses include cost of neon sign board ₹ 50,000.
c) Sales tax of ₹ 30,000 for 2015-16 was paid on 20-01-2017 but not included in the above Profit and Loss Account.
d) Actual bad debts amounted to ₹ 60,000.
e) General expenses includes ₹ 50,000 drawn by the assessee. (April/May, 2017)

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