ST.

XAVIERS COLLEGE AUTONOMUS MUMBAI

SECOND C.I.A TEST
Roll No -: __________
Day -: Duration -: 45 minutes
Date -: Class -: S.Y.BMS Max Marks -: 20marks
Subject -: Tax Course No -:
Course Title -: _____________
Q. 1 Calculate income from other source of Mr. Jay from following details 10
Marks

1. Mr. Jay received gifts from client on birthday Rs. 19,000/- in cash and Rs.
2,00,000 from mother in law.
2. Family pension received Rs. 45,000/-.
3. Mr. Jays stays in rented flat. Rent paid for entire flat Rs. 36,000/-. Rent
received from subletting of the flat Rs. 24,000/-.
4. Wining from lottery Rs. 1,30,000/- after deducting TDS 35%. Cost of lottery
ticket Rs. 2,000/-
5. Mr. Jay received interest and dividend as follows
A. Interest received on / From
1. Statutory Provided Fund 20,000
2. 14% debentures of Reliance Ltd 12,000
3. Post office saving account 35,000
4. Fixed deposit with post office 10,000
5. Loan given to friend 3,500

B. Dividend received on
A. Equity share of Indian companies 15,000
B. Preference share of Indian company 12,000
C. Equity shares of foreign company 18,000
D. Equity shares of co-operative Bank 32,000

6. Mr. Jay paid Rs. 10,000 as interest for funds borrowed for investing in 14%
debenture of reliance Ltd.

Q. 2 Following Receipt and payment a/c ( cash Book) of Dr. Raj for the year 2016-
17. Calculate his income from business and profession for the previous year 16-17,
assessment year 2017-18. Support your answer with working notes.
1. Opening WDV of furniture as on 1.4.2016 was 1,00,000/.
2. Printing and stationery includes Rs. 5,000 paid for printing invitation card of
Dr. Rajs marriages.
3. Stock of medicine as on 1.4.2016 was Rs. 20,000 and that as on 31.3.2017
was Rs. 10,000.
4. Books are treated as asset for professional like doctor as per Income tax act.
Provide depreciation on books @100% p.a. and on furniture @20% p.a
5. Salary includes advance against salary Rs. 30,000/-
6. of the rent paid in cash and remaining by cheque.

1
 7. Donation is given to National Laboratory for doing scientific research.
- 10
marks
Receipt & Payment Account for the years 2016-17
Particulars Amount Particulars Amount
To Opening balance 22,000 By Paid salaries to staff 1,00,000
To Sale of Medicine 2,00,000 By Rent paid 50,000
To Gifts from patients 50,000 By Printing and stationery 30,000
To Salary from Hospital 55,000 By Interest on Dr. Raj 12,000
capital
To Best Doctor award 1,00,000 By Books purchased on 20,000
from Hospital 1.1.2017
To sale of part of old By Furniture purchased on 50,000
furniture on 1.3.2017 60,000 1.4.2016
To Visit Fees 90,000 By Donation 30,000
To Maturity of LIC policy 5,00,000 By Purchase of medicine 60,000
By Bal. c/d (Bal. Fig) 7,25,000
10,77,000 10,77,000

Q. 1 Solution
Income from Other Source of Mr. Jay

2
Particulars Amount Amount Marks

3
 1. Interest received on
A. From statutory Provided Fund Nil .5
Fully exempt
B. From 14% debentures of
Reliance Ltd 12,000
(-) Interest paid on funds 2,000 1
borrowed - 10,000
C. Post office saving account 31,500 1
( 35,000 exempt up to 3,500)
D. Fixed deposit with post office 10,000 .5
E. Loan given to friend 3,500 47,000 .5

C. Dividend received on
E. Equity share of Indian Nil .5
companies fully exempt
F. Preference share of Indian Nil .5
company fully exempt
G. Equity shares of foreign 18,000 .5
company
H. Equity shares of co-operative 32,000 50,000 .5
Bank

D. Family pension received 45,000

(-) Exempt up to 1/3rd (15,000 * 1/3) 15,000 30,000 1
E. Gift received in cash on birthday
from
A. Clients 1,90,000 .5
B. Mother in law exempt fully Nil 1,90,000 1
F. Rent received from subletting half 24,000
of the flat @2,000 p.m.
(-) Rent Paid to owner ( 36,000 * ) - 18,000 6,000 1
G. Wining from lottery ( 1,30,000 * 2,00,000 1
100 / 65 )
Total income from other source 5,23,000

Q. 2 Solution with break up

Income from Business & Profession of Dr. Raj for Previous Year 2016-
17 Assessment Year 2017-18
Particulars Amount Amount Marks
Receipts during year
Sale of medicine 2,00,000 .5

4
 Gifts from patients 50,000 .5
Visit Fees 90,000 .5
Total Income 3,40,000

Payments During Year

Paid salaries to staff ( 1,00,000 - Rs. 70,000 1
30,000 paid as an advance)
Rent ( of the rent paid in cash) 25,000 1
50,000 25,000
Printing and stationery ( 30,000- 25,000 1
5,000 card)
Interest on capital disallowed Nil .5
Dep. On books ( 20,000 * 100% * 10,000 1
50%)
Dep. On Furniture ( working note 1 ) 18,000 2
Donation to National Laboratory for
doing scientific research( 30,000* 60,000 1
200% weighted deduction )
Medicine Consumed ( op. + 70,000 1
purchase) cl. Stock ( 20 + 60 10)
Total Exp. On business 2,78,000
Income from Business & Profession 62,000

Working note 1-
Particulars Amount
1. Opening balance as on 1.4.2016 1,00,000
(+) current year purchase on 1.4.16 50,000
Total 1,50,000
(-) Sold on 1.3.2017 60,000
Closing WDV 90,000
Dep. On closing WDV @ 20% 18,000