Sol :
Sol :
Revenue from Operations = OR 466,000
Less :
Purchases = OR -315,000
Opening Stock (31.12.2018) = OR -125,000
Add : Undervalued = OR -1,500
Less : Overvaluation = OR -2,500
Salaries = OR -15,000
Stationeries = OR -2,500
Donations = OR -9,000
Travelling = OR 11,000
Less : Personal Travelling = OR 3,500 = OR -7,500
Insurance = OR -4,000
Misc = OR -20,000
Bad Debts = OR -2,000
Depreciation = OR -2,500
Taxable Income = OR 35,500
Tax Liability = OR 35,500 *15% = OR 5,325
Note : Depreciation on Patent
It is incorrect to expense the capital asset.
Depreciation = 30000*33.33%*3/12 =2499.75 =2500
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