5568303705

■W A4.1I Ex-IJ-E-M

c.«.6980-i3.    MN-9761

(2 Hours)    |Tottl Marks : 60

N.B.: (1) Answer all qucstions.

(2)    Figures to the right indicatc fuli marks.

(3)    Working notes from part of answer.

(4)    Usc of siraple calculator is permitted.

1. The Profit and Loss Account ofMr. A for the Previous Year20l2-I3isgivenbclow:—    15

	?		?
To Purchase of goods	8,88.000	BySales	15,15,700
To Salaries, bonus and commission	2,22,000	ByClosingstock	40,000
To Rent. rates and taxes	50,000	By Intcrcst on company deposits	8.800
To Dcprcciation (!§) 15% on W ritten		(after deducting tax of ? 1.200)
Down Valuc)	28,500	By Intcrcst on sccurities (Gross)	4.000
To Travel ling cxpeascs	98.000	By Agrkultura] Incomc from UK	20.000
To Intcrcst on capital	15,000	By Dividcnd on shares of Indian
ToAdvcrtiscmcnt	58,000	companics	21.000
To Entcrtainment cxpcnscs	14,000
To lncxxne tax paid (fcr las finoncid ycar)	15,000
To Wealth tax paid	39,000
To Net Profit

You arc further informed:—

(1)    Salańcs, bonus and commission includc:

(a)    Sal ary to the proprietor- ? 22,000.

(b)    Bonus paid to cmptoyccs on 31/12/12 - ? 18,000.

(c)    Sal ary of? 20,000 was paid in India to Mr. B a non-resident cmploycc but ncither any tax was deducted at source nor paid thercon.

(2)    Advtrtisemcnt ineludes:

(a)    A bill paid incash? 22.000.

(b)    Advertiscmcnt publisbod in a Souvenir, pubłished by a political party- ? 8,000.

(3)    Dcprcciation as per Incomc Tax is chargcablc (§ 10% p.a.

(4)    Travcllingcxpenses includc a sum of? 48,000 on forcign travel to UK for atlending a mnrriagc party by the owner.

(5)    Annual stock taking rcvealcd a theft of goods costing ? 4,200 not accounted in Profit and Loss Account.

(6)    Hc incurred the following:

(a)    Life Insurance premium paid for self ? 5,000.

(b)    Mcdiclaim Insurance paid by a crossed chcquc for sclf ? 4.000.

Computc his taxablc incomc and tax liability for the Assessment Ycar 2013-14.

OR

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