Mrs. Barsha is an advocate, maintains her account on a cash basis furnished the following statement for the year end 31st Ashadh. Receipts and Payments AccountRs.PaymentsRs.To Balance b/d25,000By…

Mrs. Barsha is an advocate, maintains her account on a cash basis furnished the following statement for the year end 31st Ashadh.

Receipts and Payments AccountRs.PaymentsRs.To Balance b/d25,000By Office expenses40,000To Legal fees256,000By Office rent60,000To Consultation fees52,400By Telephone expenses6,000To Lottery income(net)7,000By Interest on bank loan25,000To Dividend (net)5,700By Membership subscription2,000To Interest from Bank (net)21,500By Electricity charges8,000To Sundry incomes37,400By Newspaper expenses6,500To Gift from clients20,000By Donation40,000To Birthday Gifts received5,000By Car expenses10,000By Premium of life insurance (own)30,000By Balance c/d202,000430,000430,000Additional information:

• Legal fees include Rs 56,000 relating to two years ago.
• Allowable depreciation Rs 30,000.
• Office expenses included Rs. 10,000 paid for household servant.
• Outstanding salary Rs 20,000 is yet to be paid.
• Electricity and telephone expenses is used equally for profession and domestic purpose.

Required: a. Net assessable income profession b. Statement of taxable income