The profit and loss account presented below of Mr. Zaheed's sole tradership business results net income of Tk.700000/= for the current accounting year ended on June 30. Compute the income from business of profession for the year considering the given additional information.

Profit and Loss account

Dr.		Cr.
Salary	Tk.500000	Gross profit	Tk.2000000
Commission	Tk.25000	Interest on securities	Tk.100000
Rent of premises	Tk.160000	Interest on bank deposit	Tk.25000
Fund embezzlement	Tk.25000
Donations	Tk.200000
Bad debt	Tk.50000
Insurance premium	Tk.47000
Depreciation expense	Tk.35000
Provision for income tax	Tk.45000
Repair expenses	Tk.20000
License renewal fee	Tk.5000
Penalty and fine	Tk.73000
Bonus	Tk.100000
Royalty	Tk.100000
Interest on bank loan	Tk.30000
Household expenses	Tk.10000
Net profit	Tk.700000
	Tk.2125000		Tk.2125000

Other information: a. Salary includes Tk.130000/= paid to an employee during December 01, 2020 to June 30, 2021 who failed to submit return within the tax day nor get extension, b. Fund embezzlement occured within office hour, c. One fourth of the premise is used as residence by Mr. Zaheed, d. Donation include Tk.150000/= paid to a charitable hospital that is approved by ITO 1984, e. Tk.7000/= of insurance premium is the payment for policy purchased in the owner's name, f. Tax depreciation amounts to Tk.50000/=, g. Of repair expenses Tk.5000/= is spent for the space used for residential purpose, h. Commission includes Tk.10000/= paid to shareholder director.

Answer rating: 100% (QA)

Computation of Income under the Head Profits and gains of a business or Profession Particulars Amou... View the full answer