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.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
100%
![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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd43d461d-ca33-4baa-999a-6a4dd56f3dc8%2F9756a59b-6a56-4364-8328-7ba3379d228d%2Fhiaxl7k_processed.jpeg&w=3840&q=75)
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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd43d461d-ca33-4baa-999a-6a4dd56f3dc8%2F9756a59b-6a56-4364-8328-7ba3379d228d%2Fdig77v6_processed.jpeg&w=3840&q=75)
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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