Given below is the trading, profit and loss account of a proprietorship firm: Particulars Amount Particulars Rs To Opening stock210,000By Sales4,900,000To Purchase2,020,000By Closing stock450,000To…

Given below is the trading, profit and loss account of a proprietorship firm: ParticularsAmountParticulars****RsTo Opening stock210,000By Sales4,900,000To Purchase2,020,000By Closing stock450,000To Carriage260,000To Wages340,000To Customs duty110,000To Gross profit c/d2,410,0005,350,000****5,350,000To Salary650,000By Gross profit b/d2,410,000To Office rent240,000By Rent from staff quarter45,000To General expenses70,000By Interest from investment70,000To Water and electricity80,000By Commission received10,000To Legal expenses15,000By Sundry receipts40,000To Audit expenses30,000By Bad debt recovered60,000To Promotion expenses25,000By Divided received40,000To Interest on loan40,000By Gain on sale of non business assets130,000To Bad debts30,000By Gift received relating to business50,000To Fine and penalties10,000To Provision for tax30,000To Life insurance premium (own)35,000To Fire insurance premium20,000To Donation80,000To Pollution control cost110,000To Depreciation (Block D)50,000To Repair (Block D)30,000To Sundry expenses50,000To Net profit c/d1,260,0002,855,000****2,855,000 Further information: i. Opening and closing stock were over valued by Rs. 10000 and Rs. 50000 respectively. ii. Purchase include purchase of plant costing Rs. 120,000 which was purchased on 15^th Chaitra of previous year and the opening WDV of the plant was Rs. 400,000. A part of plant costing Rs. 80,000 was disposed during the previous year. iii. Business loss of last year is Rs. 50,000. iv. Donation was given to private nursing home and public hospital equally. v. Legal expenses include Rs. 5,000 incurred for domestic purpose. vi. 30% of bad debt recovered was not allowed previously by Inland Revenue Office. Required: i) Net (assessable) income from business ii) Statement of total taxable income iii) Tax liability