Q.3. The following results of a company are available: (20)
a. Current Ratio 6 : 1
b. Quick Ratio 0.50 : 1
c. Debt Equity Ratio 90 : 10
d. Collection index 136 days
e. Time Interest Earned 08 : 1
Required:-
Offer your comments on each of the above regarding their adequacy or otherwise

2007
Q6 Taxable income 185,800

2008
Q7 12925

2009
330,000

2010
Q7 taxable income 452500 tax liability 2625
2011
tax 227,500
2012
tax 1,591,300

agar tax liability income for the 2010-11 ki maloom karne k lia kaha jae exam me to phir hum new tax slab use kare ge ya old one???

there is a problem is 2013s question # 2, the information is not correct perhaps because, i have tried and tried to balance it but my balance sheet is unequal, which means there is a problem in retained earnings and thus net income. its very tricky so there is that too. i'd advice that questions like these should be left out using choice. unless ofcourse the balances are equal. and u know how to do it!

PLEASE COMMENT

Calculate income of Mr Amjid
Monthly rental income Rs10000
property tax Rs2000
Rent collection charges Rs8000
Interest on loan from HBFC

SOLUTION

RENTAL INCOME 120000
ADD:
PROPERTY TAX 2000
LESS:
RENT COLLECTION
CHARGES (8000)
INTEREST IN
HOUSE BUILDING
FINANCE CORP (6000)
=
INCOME CT Rs. 108000

Income statement:
Revenues:
Admissions revenue 72400
concessions revenue 6200
total revenue 78600

expenses:
Depreciation: Building 875
project equipment 1500
salaries expense 25000
light and power 7750
rent 42275
interest 1800
total expenses 79200

net profit 78600-79200= (600)

balance sheet:
Non current assets (net)
land 75000
building 203000
project equipment 81000
total nca 359000

current assets:
Cash 17500
prepaid film rental 22725
concessions revenue 6200
total current assets 46425

current liabilities:
Notes payable 200000
accounts payable 8500
unearned revenue 1550
interest accrued 1800
salaries accrued 3750
total liabilities 215600

net assets= nca+ca-cl= 189825

represented by:
Capital 2000925
-drawings (10500)
+net profit (600)
net assets =189825

__________________
“Whenever you find yourself on the side of the majority, it is time to pause and reflect.” -Mark Twain

Q6. P1. 2013
Rs. 367,000/-

2014. P1. Q5
Rs. 84,000/-

2004. P1. Q4
Rs. 114,700/-

2013. P2. Q6
Taxable income= 894,000/-
Tax liability= 31,980/-

2014. P2. Q6
taxable liability= 84,500/-

Paper I Question#3
I) Current Ratio=2.33:1
II) Acid test Ratio=1.33:1
III) Debt to Equity Ratio= 1:1
If only long-term debt are considered then the ratio will be 7:10
IV) Gross Profit Ratio= 14%
V) Operating Ratio = 92.43%

Trading & Profit and loss Account
Gross Profit=152000
Net Profit=4450
Profit and loss Appropriation Account
Balance Transferred to Balance Sheet=24950
Balance Sheet
Balance=637950
Note
There is contingent liability of 50000 which will be included in the balance sheet we have to just write a footnote to mention the contingent liabilities.

Remember in your prayer.

asddsa
in Q6 of paper 2 2013 the total income from business is 64900 or 85900 so tax liability cannot be calculated however on dividend and winning from lottery tax rates will be applicable also i am unable to understand how did you calculate the taxable income of 894000?