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ved to be debuted to P&LN ILLUSTRATION 39. Profit and Loss Account of Mis Raju & Company General Expenses are Insurance Premium and debts ories Advertisement (in cash) proprietor's salary crest on capital Income tax Depreciation Sales-tax (due) Advance income-tax paid Donations 7.000 Gross Profit 1.50.000 2.000 Bad debts, recovered 1.000 but disallowed carlier 4,000 65.000 Interest from Govt 22,250 Securities 4.000 12.500 Rent received from employees 12.000 2,000 Interest from debtors for 1.000 delayed payment 6.000 2,000 5,000 1.000 500 Motor car expenses 750 Municipal taxes of quarters letto amployees 5.000 39,000 Net profit 1.66,000 1.66.000 General expenses include 4.000 paid as compensation to an old employee whose services were aminated in the interest of the business and 2,200 by way of help to a poor student. Depreciation alculated according to the rates comes to 2.900. Sales tax was paid on 1-5-2015 Date of filing of cturn is 31-7-2015 50% of Motor-car expenses are for proprietor's personal use Compute business income