Following is the summarized statement of cash concerning class 'B' registered auditor for the previous year. Receipts and payments Account ReceiptsRs.PaymentsRs.To Balance b/d40,000By Office…

Following is the summarized statement of cash concerning class 'B' registered auditor for the previous year.

Receipts and payments Account

ReceiptsRs.PaymentsRs.To Balance b/d40,000By Office expenses100,000To Consultation fees280,000By Office rent72,000To Audit fees350,000By Salary to assistant84,000To Interest from bank deposit (net)28,500By Life insurance premium (self)16,000To Income from writing article27,000By Household expenses42,000To Interest on investment40,000By water and electricity expenses50,000By Balance c/d421,000To Sale of old newspaper2,000To Dividend from resident Co.17,500785,000785,000

Additional information: ➤ Consultation fees include Rs 25,000 relating to next year. ➤ Audit fees include Rs 40,000 related to previous year. ➤ Water and electricity expenses is equally used for office and personal purpose. ➤ Allowable depreciation of fixed assets Rs 10,000.

Required: (a) Net assessable income profession (b) Statement of taxable income