Calculate Total Business Income.

Here is the solution to the "Statement of Business Income" based on the provided image.

Step 1: Calculate Total Business Income. We sum all the income items listed in the statement.

• Sales: $Rs. 4,00,000$
• Gain on disposal of depreciable assets: $Rs. 3,00,000$
• Sundry income: $Rs. 63,000$
• Refund of customs duty: $Rs. 28,000$
• Bad debt recovered: $Rs. 30,000$
• Rent from staff quarter: $Rs. 60,000$
• Gain on sales of vacant land used in business: $Rs. 1,20,000$
• Interest from credit sales: $Rs. 30,000$

Total Business Income: $4,00,000 + 3,00,000 + 63,000 + 28,000 + 30,000 + 60,000 + 1,20,000 + 30,000 = Rs. 9,10,000$

Step 2: Calculate Total Allowable Deductions. First, we correct the calculation for "Cost of Trading Stock" based on the figures provided in the bracket. Cost of Trading Stock = (Opening Stock + Purchases + Direct Expenses) - Closing Stock $Cost of Trading Stock = (3,00,000 + 70,000 + 1,00,000 + 2,30,000 + 70,000 + 1,60,000) - 7,00,000$ $= 9,30,000 - 7,00,000 = Rs. 2,30,000$

Now, we sum all the allowable deductions:

• Cost of Trading Stock: $Rs. 2,30,000$ (Corrected)
• General expenses: $Rs. 2,00,000$
• Interest on loan: $Rs. 50,000$
• Commission and brokerage: $Rs. 66,000$
• Legal fees: $Rs. 30,000$
• Entertainment expenses: $Rs. 40,000$
• Advertisement expenses: $Rs. 10,000$
• Papers and periodicals: $Rs. 35,000$
• Utility expenses: $Rs. 1,60,000$
• Office expenses: $Rs. 40,000$
• Printing and stationery: $Rs. 80,000$

Total Allowable Deductions: $2,30,000 + 2,00,000 + 50,000 + 66,000 + 30,000 + 40,000 + 10,000 + 35,000 + 1,60,000 + 40,000 + 80,000 = Rs. 9,41,000$

Step 3: Calculate Assessable Business Income (or Loss). Assessable Business Income = Total Business Income - Total Allowable Deductions $Assessable Business Income = 9,10,000 - 9,41,000 = Rs. -31,000$

Since the result is negative, it represents a business loss.

$\boxed{Assessable Business Loss: Rs. 31,000}$ 3 done, 2 left today. You're making progress.