From the following information, compute income from business of AB Associates, a firm of A and B (both working partners) who share profits and losses in the ratio of 1:2.
Net profit as per P & L A/c (after debiting the following)Rs.20,000

(a)Salary to partner A 60,000 and partner B 40,000
(b)Commission to partner A Rs.20,000
(c)Interest on capital (15%) Partner A 9,000 and partner B 6,000
(d)Rent to partner B 36,000

The payments to partners have been made in accordance with the partnership deed. The firm satisfies the conditions of section 184. Also compute the taxable income of partners. A has income from other sources Rs.40,000 while B has STCG Rs.50,000 and LTCG Rs.60,000.

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