Miss Dhakal, a sole trader furnished the following income statement for the previous year: Trading and Profit & Loss Account Dr. Cr. ParticularsAmount (Rs)ParticularsAmount (Rs)To, Opening…

Miss Dhakal, a sole trader furnished the following income statement for the previous year: Trading and Profit & Loss Account Dr. Cr. ParticularsAmount (Rs)ParticularsAmount (Rs)To, Opening Stock100,000By, Closing Stock200,000To, Purchase500,000By, Sales2,800,000To, Custom Duty50,000To, Carriage20,000To, Wages200,000To, Gross Profit2,130,0003,000,0003,000,000To, Office rent100,000By, Gross profit2,130,000To, Salaries200,000By, Discount received15,000To, Depreciation90,000By, Interest on Investment50,000To, Interest on loan60,000By, Sundry income100,000To, Bad Debts30,000By, Interest related to business40,000To, Provision for tax30,000By, Amount received for accepting restriction of business70,000To, Fire insurance Premium25,000To, Legal Expenses75,000By, Gain on sale of NBCA200,000To, Pollution Control Cost120,000To, Donation (60% allowed)50,000To, Net profit1,825,000Total2,605,000Total2,605,000 Additional information: ➢ Purchase includes Rs 200,000 the value of Plant & Machine purchased on Marga. Opening WDV of plant was Rs 300,000. No part of plant was sold during the year. ➢ Legal expenses includes Rs 20,000 for Income Tax Appeal. ➢ Opening and Closing Stock are undervalued by 10% ➢ Sundry income includes Rs 20,000 Refund of Custom Duty ➢ Unrecovered business loss of previous 7 years Rs 100,000 is not adjusted in above statement. Required: (a) Assessable income from business (b) Statement of taxable income (c) Tax liability