Computation of profits and gains of Business or profession of Mr.

Pinka Mukherjee for the

Assessment year 2021-22 relating to the previous year 2020-21

Particulars Note Details (Rs.) Amount (Rs.)

Net Profit as per books of 50,000
accounts
Add: Expenditure disallowed
but debited in P/L A/C
Depreciation 1 22,000
Provision for Income tax 2 10,000
Life Insurance premium 3 5,000
Provision for Bad debts 4 1,000
Interest on capital 5 2,000
Salary to himself 5 6,000
Drawings (GOODS) 5 18,000
Penalty 6 2,000
66,000
1,16,000
Less: Expenditure allowed but
not debited in P/L A/C 25,000
91,000
Less: Income not taxable but
credited to P/L A/C
Bad debt recovered 3,000
Overvalued Closing stock 5,000
Sales to himself 5 20,000
Interest on Fixed Deposit 10,000 38,000
(IFOS)
PGBP 53,000

Notes:

1. Depreciation as per I.T Rules shall be allowed.

2. Income tax is specifically disallowed u/s 40(a).
3. Personal expenditure is not allowed.
4. Any kind of provisions is not allowed.
5. Sales, salary to himself and interest on capital to proprietor is not allowed as no one can
earn from himself.
6. Fines paid in contravention of law are not allowed.