Chapter 30 Solved Past Papers Income Tax Numericals of ICMAP Stage IV - (2003 to 2018)
(iii)Rupees
Consideration for the sale of the house on December 31, 2022 45,000,000
39,000,000Capital gain 6,000,000(iv) Transaction with Mr. Nazir:
Rupees
Consideration received from shipping company 1,050,000
Scrap vlue 300,000
Less: cost of machine 2,000,000
Documentation chages 35,000
685,000Less: Cost on June 25, 2017, the date of inderitence by Mr. FarazSince the disposal was made after holding the house for more than four years and it was
acquired before July 01, 2017, therefore no gain is taxable under the law.An antique is a capital asset. However, loss will not recognised on disposal of the same.Capital loss
This capital loss is allowed to be adjusted against any other capital gain. While, the unadjusted752___ Conceptual Approach to Taxes
Q. NO. 2(b) Spring 2017Sales 8,500,000
Less: Cost of sales 5,950,000
Gross profit 2,550,000
Less: Marketing, Selling and Administrative Expenses:
Advertisement expenses 230,000
Finance charges on leaded assets 2,000
Depreciation on leased assets 70,000
depreciation on owned assets 85,000
Provision for doubtful debts 22,000
Salary to Mr. Malik 600,000
Salary to Mr. Khalid 480,000
Commission to Mr. Faisal 212,500
Other expenses 115,000 1,817,000
Net Profit 733,000This capital loss is allowed to be adjusted against any other capital gain. While, the unadjusted
balance loss, if the same is not adjusted in the same tax year then it is allowed to be adjusted in
next six succeeding tax years against capital gain only.Falas Associates in an AOP, having three partners, Mr. Faisal, Mr. Malik and Mr. Khalid. They
share profit or less in the ratio of 2: 2: 1. The principal activity of Falah Associates is manufacturing
of leather products. Following is the statement of profit or loss of the AOP.Net Profit 733,000Additional Information:. Other expenses represent the following:
Rupees. Cost of Sales includes depreciation charges of Rs. 220,000 and aggregate freight charges or Rs.
72,000, Rs. 19,000 of the total of freight charges was single payment in cash.
752___ Conceptual Approach to Taxes