Accountting Taxation Income from Business/Depreciation Net Income of Isman Ltd for the tax year 2021 was Rs 750,000. The following information has been extracted: Accounts Receivable: Rs. 250,000/Accounts Payable: Rs. 150,000 Provision for Bad Debts: @15% of Accounts receivable Cash paid to gardener Rs. 15,000 per month Assets (Tax) WDV at beginning of the year: -Plant and Machinery- Rs. 850,000 -Building: Rs. 1.5 million -Vehicles: Rs. 900,000 New machinery worth Rs. 150,000 and a new Toyota was bought for Rs. 1.5 million A part of building was sold off for Rs. 600,000. The tax WDV for the parted building: Rs. 550,000 Accounting depreciation: Rs.410,000 Fine paid to LDA- Rs. 50,000 in cash . Compute the taxable income for Isman Ltd Special requirements Accounting
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Accountting
Taxation
Income from Business/
Net Income of Isman Ltd for the tax year 2021 was Rs 750,000.
The following information has been extracted:
Provision for
Cash paid to gardener Rs. 15,000 per month
Assets (Tax) WDV at beginning of the year:
-Plant and Machinery- Rs. 850,000
-Building: Rs. 1.5 million
-Vehicles: Rs. 900,000
New machinery worth Rs. 150,000 and a new Toyota was bought for Rs. 1.5 million
A part of building was sold off for Rs. 600,000. The tax WDV for the parted building: Rs.
550,000
Accounting depreciation: Rs.410,000
Fine paid to LDA- Rs. 50,000 in cash
.
Compute the taxable income for Isman Ltd
Special requirements
Accounting
Step by step
Solved in 2 steps
