N9 Gross Profit Proti on sale of Motor car Profit on sale of Investments 50,700 500 400 Salaries and Wages Marketing charges Advertising General charges Legal expenses Travelling expenses Interest on Bank loan Discount Reserve for Bad Debts Bad debts written off Payment to retiring partner Interest on capital A 300 3400 800 Net Profit 16,000 175 325 11.700 2.500 1.400 150 75 125 80 1.000 1.500 16.870 51.900 51.900 Compute the taxable income of the firm and its tax liability for the assessment year 2012-13 (a) Salaries and wages include a partnership salary of 500 per month to B: (h) General charges include a sum of 3.000 paid to save business reputation, and (e) Motor car was used wholly for business purposes. At the time of sale the written down value of the car was