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Taxation Management (FIN623) Assignment # 01 Solution required


Question:

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:

Rs.

Sales of goods manufactured 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.

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