Ahmad Foods Limited is famous for its food products. The company is engaged in agricultural as well as industrial activities. It has its own farms where fruits, tomato, etc., are produced. These items along with those purchased from the market are used in manufacturing ketchup, Jams, Jelly and Marmalade.
Compute the business and the agricultural income from the following information for the
year ended on 30th June, 200A:
Sales of goods manufactured..........Rs. 11,250,000
Expenses on agriculture.......................1,500,000
Purchases from the market....................2,250,000
Manufacturing expenses ......................1,125,000
Selling expenses.............................750,000
Financial expenses............................375,000
Administrative expenses......................1,275,000
The market value of the goods produced by the company and utilized in manufacturing is Rs. 3,750,000.
Compute the business and the agricultural income from the following information for the
year ended on 30th June, 200A:
Sales of goods manufactured..........Rs. 11,250,000
Expenses on agriculture.......................1,500,000
Purchases from the market....................2,250,000
Manufacturing expenses ......................1,125,000
Selling expenses.............................750,000
Financial expenses............................375,000
Administrative expenses......................1,275,000
The market value of the goods produced by the company and utilized in manufacturing is Rs. 3,750,000.
Solution:-
TWO PORTIONS TO SOLVE THIS QUESTION:
1- BUSINESS INCOME
2- AGRICULTUREAL INCOME
1-SOLUTION:
SALES RS. 11,250,000
LESS: COST OF SALES:
MKT VALUE OF GOODS PRODUCED BY
THE COMPANY IS RS. 3,750,000*
RAW MATERIAL PURCHASED 2,250,000
MANUFACTURING EXPENSES 1,125,000
TOTAL COST OF SALES ( 7,125,000)
GROSS PROFIT 4,125,000
LESS OPERATING EXPENSES:
SELLING + ADMIN + FINANCE COSTS (2,400,000)
NET PROFIT RS. 1,725,000
AGRICULTURAL INCOME:
MKT VALUE OF GOODS PRODUCED AND USED AS RAW MATERIAL RS. 3,750,000
LESS: EXPENSES ON AGRICULTURE (1,500,000)
NET AGRICULTURE INCOME RS. 2,250,000
NOTE* RULE 11 ( AGRICLUTURE PRODUCE AS RAW MATERIAL)
Where a cultivator or receiver of rent in kind uses the agriculture produce as raw material, in his business, then the income chargeable to tax under the head " INCOME FFROM BUSINESS" SHALL BE COMPUTED AS FOLLOW
TOTAL INCOME - MKT VALUE OF AGRICULTURE PRODUCE UTILIZED IN BUSINESS ARE RAW MATERIAL.
1- BUSINESS INCOME
2- AGRICULTUREAL INCOME
1-SOLUTION:
SALES RS. 11,250,000
LESS: COST OF SALES:
MKT VALUE OF GOODS PRODUCED BY
THE COMPANY IS RS. 3,750,000*
RAW MATERIAL PURCHASED 2,250,000
MANUFACTURING EXPENSES 1,125,000
TOTAL COST OF SALES ( 7,125,000)
GROSS PROFIT 4,125,000
LESS OPERATING EXPENSES:
SELLING + ADMIN + FINANCE COSTS (2,400,000)
NET PROFIT RS. 1,725,000
AGRICULTURAL INCOME:
MKT VALUE OF GOODS PRODUCED AND USED AS RAW MATERIAL RS. 3,750,000
LESS: EXPENSES ON AGRICULTURE (1,500,000)
NET AGRICULTURE INCOME RS. 2,250,000
NOTE* RULE 11 ( AGRICLUTURE PRODUCE AS RAW MATERIAL)
Where a cultivator or receiver of rent in kind uses the agriculture produce as raw material, in his business, then the income chargeable to tax under the head " INCOME FFROM BUSINESS" SHALL BE COMPUTED AS FOLLOW
TOTAL INCOME - MKT VALUE OF AGRICULTURE PRODUCE UTILIZED IN BUSINESS ARE RAW MATERIAL.
Please do make changes in these assignment otherwise every one who copy this assignment as it is will awarded zero marks
NOTE: - These Assignments OR Quiz are just for idea, so kindly don't copy it, after viewing it make your own. Thanks We always try our best to upload 100% correct solution BUT it is requested that you kindly review it before submission, please BEST OF LUCK, Thanks to those students those send me Assignments and quizzes. If you have any Assignment and quiz kindly send at jamilbookcenter@yahoo.com
No comments:
Post a Comment