Problem 10-4

Details Amount
Net profit 452000
Add: Inadmissible Expenses
Depreciation of Equipment 20000
Salaries 280000
Brokerage fees 45000
Purchase of copyright 200000
Deprciation- office equipment 60000
Fines and penalties 20000

Payment to Daughter 50000

Miscellaneous Expense 40000
1167000
Less: Admissible Expenses
Depreciation on Equipment 30000
Depreciation on office furniture 50000

deduct: Non-business Income

Interest and discount received 25000
Interest on debenture 80000
Dividend on share 60000
Income from house property 180000
Total 345000
Income from Business 742000
add: nonbusiness income 345000
Totalincome 1087000
 Problem 10-5
Details Amount
Professional receipts
Fees from Client 150000
Presents from Client 40000
190000
Less: Professional payments
Office and administrative expenses 60000
Salary to staff 70000
Repairs 8000
Interest on loan for business 12000
Purchase of car 30000
Income from profession 10000