Mr. Bhandari, a trader furnished the following trading and profit and loss account for previous year: ParticularsAmountParticularsAmountTo Opening stock90,000By Sales2,950,000To Purchases500,000By…

Mr. Bhandari, a trader furnished the following trading and profit and loss account for previous year:

ParticularsAmountParticularsAmountTo Opening stock90,000By Sales2,950,000To Purchases500,000By Closing stock55,000To Carriage150,000To Wages250,000To Gross profit c/d2,015,0003,005,0003,005,000To Salaries180,000By Gross profit b/d2,015,000To Legal expenses19,000By Commission30,000To Bad debts expenses20,000By Interest on investment50,000To General reserve100,000By Refund of income tax20,000To Pollution control cost50,000By Sundry income25,000To Depreciation150,000By Dividend (Net)37,500To Repairs expenses100,000By Bad debts recovered15,000To Donation paid to public school80,000By Amount received for accepting restriction regarding business25,000To Office expenses165,000By speculation income5,000To Audit fees15,000By Rent from staff quarter17,500To Hospitality expenses20,000By gain on sales of (non business chargeable assets)60,000To Advance income tax paid7,500To Fine and penalty25,000To Bonus to staffs35,000To Advertising9,000To Net profit1,324,5002,300,0002,300,000Additional information:

• Opening stock undervalued by 10% and closing stock overvalued by 20%
• Refund of income tax includes Rs 15,000 as refund of custom duty.
• Legal expenses included Rs 5,000 for fine and penalty paid to local government.
• Depreciation on car has not been charged in the above statement. The depreciation base of the car was Rs 500,000.
• Office expenses include Rs 55,000 as a printing expenses paid at a time by cash while banking facilities available within 10 kilometers.
• Previous year business loss stood Rs 50,000.

Required: a. Net assessable income from Business. b. Net assessable income from investment. c. Statement of total taxable income. d. Tax liability. e. Giving explanation wherever necessary.