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On the basis of above information you are required to compute Taxable Income of the Omani Company as per form 14 of the Income Tax Act and rules.

On the basis of above information you are required to compute Taxable Income of the Omani Company as per form 14 of the Income Tax Act and rules.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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I. Following is the Profit & Loss Account of an Omani Company. P/L Account for the year ending_31-12-2016 Opening Stock 22400 Sales 600000 Purchase 350000 Closing Stock 24700 wages 25800 Gross profit 226500 RO 624700 RO 624700 Salaries 60000 Gross profit 226500 Remuneration of chairmen and members of board of directors 30000 Commission received 10000 Conveyance 8500 Discount received 2500 Stationery 2500 Bank Interest 3500 Telephone expenses 5250 Dividend received 1000 Rent 12000 Fees from medical camps 9000 Depreciation 5400 Audit fees 12000 Electricity Expenses 1500 Loss by fire 10000 Bad debt w/o 5000 Other provisions 3000 Income Tax paid Loss on sale of securities listed 5000 in MSM 2000 Other expenses 10,350 Net profit 80,000 RO 252500 RO _252500
Transcribed Image Text:I. Following is the Profit & Loss Account of an Omani Company. P/L Account for the year ending_31-12-2016 Opening Stock 22400 Sales 600000 Purchase 350000 Closing Stock 24700 wages 25800 Gross profit 226500 RO 624700 RO 624700 Salaries 60000 Gross profit 226500 Remuneration of chairmen and members of board of directors 30000 Commission received 10000 Conveyance 8500 Discount received 2500 Stationery 2500 Bank Interest 3500 Telephone expenses 5250 Dividend received 1000 Rent 12000 Fees from medical camps 9000 Depreciation 5400 Audit fees 12000 Electricity Expenses 1500 Loss by fire 10000 Bad debt w/o 5000 Other provisions 3000 Income Tax paid Loss on sale of securities listed 5000 in MSM 2000 Other expenses 10,350 Net profit 80,000 RO 252500 RO _252500
Other information: 1. Income earned by the company not recorded in accounts. i. Lease rent received per month for hiring plantx 12 ii. Income from Lease of Tractor for the year iii. Paid driver salary for tractor per month 5,000 20,000 500 iv. Other repairs and petrol expenses of the tractor 1000 per month 2. Tractor was sold for 30,000 RO the book value was 25,000 RO (30000- 25000)–5000 Salaries paid to the part time accountants was not wholly incurred to the extent of 5000 RO to realise gross income of the company 4. An amount of RO 8000 received in pursuant of Insurance Contract for loss by fire. 5. Depreciation of capital assets as per Law.2,500 6. Remunerations allowed as per Law RO 20,000. 7. Carried forward Losses RO 10,000 On the basis of above information you are required to compute Taxable Income of the Omani Company as per form 14 of the Income Tax Act and rules.
Transcribed Image Text:Other information: 1. Income earned by the company not recorded in accounts. i. Lease rent received per month for hiring plantx 12 ii. Income from Lease of Tractor for the year iii. Paid driver salary for tractor per month 5,000 20,000 500 iv. Other repairs and petrol expenses of the tractor 1000 per month 2. Tractor was sold for 30,000 RO the book value was 25,000 RO (30000- 25000)–5000 Salaries paid to the part time accountants was not wholly incurred to the extent of 5000 RO to realise gross income of the company 4. An amount of RO 8000 received in pursuant of Insurance Contract for loss by fire. 5. Depreciation of capital assets as per Law.2,500 6. Remunerations allowed as per Law RO 20,000. 7. Carried forward Losses RO 10,000 On the basis of above information you are required to compute Taxable Income of the Omani Company as per form 14 of the Income Tax Act and rules.
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