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    Compute Taxable Income and Taxpayable of ABC Company For Tax Year Ending On 31st Dec 2020. (Manufactuere)

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    Abdul wahab
    The document provides information to compute the taxable income and tax payable of ABC Company for the 2020 tax year. It lists the company's income and expenses and provides notes on certain line items. It then calculates the actual net profit, taxable income, taxes owed, and total tax payable.

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    Compute Taxable Income and Taxpayable of ABC Company For Tax Year Ending On 31st Dec 2020. (Manufactuere)

    Uploaded by

    Abdul wahab
    7 views4 pages
    The document provides information to compute the taxable income and tax payable of ABC Company for the 2020 tax year. It lists the company's income and expenses and provides notes on certain line items. It then calculates the actual net profit, taxable income, taxes owed, and total tax payable.

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    2-4-21 (B)

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    The document provides information to compute the taxable income and tax payable of ABC Company for the 2020 tax year. It lists the company's income and expenses and provides notes on certain line items. It then calculates the actual net profit, taxable income, taxes owed, and total tax payable.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    7 views4 pages

    Compute Taxable Income and Taxpayable of ABC Company For Tax Year Ending On 31st Dec 2020. (Manufactuere)

    Uploaded by

    Abdul wahab
    The document provides information to compute the taxable income and tax payable of ABC Company for the 2020 tax year. It lists the company's income and expenses and provides notes on certain line items. It then calculates the actual net profit, taxable income, taxes owed, and total tax payable.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    of 4

    ### Compute taxable income and Taxpayable of ABC Company

    for tax year ending on 31st Dec 2020. (Manufactuere)


    Salaries and wages 2,000,000 Gross profit 12,500,000
    Travelling Exp 100,000 Discount Received 45,000
    office supplies 100,000 Miscellaneous Receipts 175,000
    General exp 150,000 Bad Debts Recovered 220,000
    Bad debts 1,200,000 Rental Income 680,000
    Reserve for bad debts 400,000 Amount received on sale of a plot ( 1-8 10,500,000
    Machinary Purchased 220,000 Income from Speculayive business 300,000
    Utility bills 150,000
    Advertisement 350,000
    Drawings 150,000
    Bank Loan 2,500,000
    Loss by embazzelment 125,000
    Loss of stock by theft 380,000
    Sales Tax 128,000
    Discount Allowed 75,000
    Income tax paid in Advance 125,000
    Depreciation 190,000
    Net Profit 16,077,000
    24,120,000 24,420,000
    Notes:
    1 Salary include Rs.100000 to Mr Saleem who was resposible to collect Rent.
    2 20% of travevelling expenses were un vouchered, out of remaining 35% were
    made by director for personal use.
    3 1/3 od Bad debts were approved by CILR.
    4 Plot was purchased for 40,00,000 in June 2019.
    5 Machinary was retained for 8 Months and was sold for Rs.180,000.
    6 1/3 Of loss by theft was insured , 2/3rd of the claim was approved by Insurance company.
    7 Investigation proved Embazzelment was made after office hour.
    8 Discount received was 54000 instead of 45000. Plot
    9 General exp include donation of 80,000 to approved institution. Sale
    10 The company has 80 Employees including 40 fresh Graduates are Having salary Profit
    3000 Pm. Exempt @ 25 %
    Taxable @ 75 %

    Rent/ Gross RCT 680,000 50 Employeess


    Allowable deductions 1 Employee
    Reparing charges 136,000 80 Employee
    Collection Chareges 100000 40,800 15% of Employees
    Net RCT 503,200
    Given Net Profit 16,077,000 Machinary A/c
    Add: Not Allowable deductions
    Salaries 100,000.00 Initial Dep @ 25 %
    un- Vouchered Travelling exp 20,000.00
    Travelling exp for personal use 28,000.00 Normal Dep @ 15 %
    Donation 80,000.00
    Unapproved bad debts 800,000.00
    Machinary Purchased 220,000.00 Profit on sale
    Reserve 400,000.00
    Drawings 150,000
    Bank Loan 2,500,000
    Loss by embazzelment 125,000
    126,666.67 Insured Stock 84,444.44
    Advance I.Tax 125,000.00 4,632,444.44
    20,709,444.44
    Less: Allowable omitted Exp
    Depreciation on Machinary 55,000.00
    20,654,444.44
    Less: Incomes not Allowed
    Rental income 680,000.00
    Amount recived on sale of plot 10,500,000.00
    Income from Speculayive business 300,000.00 11,480,000.00
    9,174,444.44
    Add: Omitted Income
    Undercost Discount 9,000.00
    Profit on sale of Machinary 15,000.00 24,000.00
    Actual Net Profit 9,198,444.44
    Computation of Tax
    Step # 1 Corporate tax @ 29% 2,667,548.89
    ACT 2,456,840.00 2,667,548.89
    4000000 Add: Tax SBI
    10,500,000.00 Plot 243,750.00
    6,500,000.00 Rental income 75,480.00 319,230.00
    1,625,000.00 2,986,778.89
    4,875,000.00 A: Relief 23200
    2,963,578.89
    Tax creidit on employment generation
    2 85,361.56 296,357.89 85,361.56
    0.04 2,878,217.32
    3.2 Tax credit on employing fresh readuates
    12 A/B x C
    A 2,878,217.32
    B 9,198,444.44
    C 459,922.22 432,000.00 135,173.93
    2,743,043.39
    less: Tax paid in Advance 125,000
    Tax payable on Non Speculative business 2,618,043.39
    plus Tax on Speculative inceme 87000
    Total Tax Payable 2,705,043.39
    Machinary A/c
    220,000
    36,666.67
    183,333.33
    18,333.33
    165,000.00
    180000
    15,000.00

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