Following particulars have been obtained from the accounts of a company. i) Remuneration of Managing Director 20,000 ii) Provision for Bad debts 10,000 iii)Provision for taxation 1,50,000 iv) Depreciation written off 80,000 v) Loss on sale of investments 70,000 vi) Depreciation allowable according to Income-Tax Provisions 70,000 vii) Net profit after considering the above items 4,50,000 Calculate remuneration of Managing Director at 5% of net profit. The net profit should be as per provisions of Companies Act.
Following particulars have been obtained from the accounts of a company. i) Remuneration of Managing Director 20,000 ii) Provision for Bad debts 10,000 iii)Provision for taxation 1,50,000 iv) Depreciation written off 80,000 v) Loss on sale of investments 70,000 vi) Depreciation allowable according to Income-Tax Provisions 70,000 vii) Net profit after considering the above items 4,50,000 Calculate remuneration of Managing Director at 5% of net profit. The net profit should be as per provisions of Companies Act.
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter6: Accounting Quality
Section: Chapter Questions
Problem 2IC
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Following particulars have been obtained from the accounts of a company.
i) Remuneration of Managing Director 20,000
ii) Provision for
iii)Provision for
iv)
v) Loss on sale of investments 70,000
vi) Depreciation allowable according to Income-Tax Provisions 70,000
vii) Net profit after considering the above items 4,50,000
Calculate remuneration of Managing Director at 5% of net profit. The net profit should be as per provisions of Companies Act.
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