From the following information given by ABC Ltd. for the year ended 31st March, 2016, calculate the Managing Director's Remuneration in terms of the Companies Act, 2013. Managing Director is entitled to a commission of 4% on profits available for dividend purpose assuming rate of income- tax 50% on ordinary profits and 20% on capital profits. Also calculate the amount of income-tax payable. 2$ 2$ 48,00,000 50,000 10,000 Salaries including Bonus Rent, Rates & Taxes General Expenses Managing Director's Remuneration Depreciation Ex-gratia payment to an employee Provision for Income Tax 18,00,000 Gross Profit 1,00,000 Profit on Sale of Fixed Assets 2,50,000 Unpaid Dividend 40,000 4,00,000 31,000 5,00,000 2,00,000 50,000 14,89,000 Transfer to General Reserve Development Rebate Reserve Balance c/d 48,60,000 48,60,000

From the following information given by ABC Ltd. for the year ended 31st March, 2016, calculate the Managing Director's Remuneration in terms of the Companies Act, 2013. Managing Director is entitled to a commission of 4% on profits available for dividend purpose assuming rate of income- tax 50% on ordinary profits and 20% on capital profits. Also calculate the amount of income-tax payable. 2$ 2$ 48,00,000 50,000 10,000 Salaries including Bonus Rent, Rates & Taxes General Expenses Managing Director's Remuneration Depreciation Ex-gratia payment to an employee Provision for Income Tax 18,00,000 Gross Profit 1,00,000 Profit on Sale of Fixed Assets 2,50,000 Unpaid Dividend 40,000 4,00,000 31,000 5,00,000 2,00,000 50,000 14,89,000 Transfer to General Reserve Development Rebate Reserve Balance c/d 48,60,000 48,60,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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