The Professionals’ Academy of Commerce

INCOME TAX
Class assignment
Admissible & Inadmissible Expenses (Solution)

Q-1
S Admissible /
No. Inadmissible
1 Admissible
2 Admissible
3 Inadmissible
4 Inadmissible
5 Admissible Q-2
6 Inadmissible
S No. Correct /
7 Inadmissible
Incorrect
8 Admissible
9 Admissible 1 Incorrect
10 Inadmissible 2 Incorrect
11 Inadmissible
12 Inadmissible 3 Incorrect
13 Inadmissible 4 Incorrect
14 Inadmissible 5 Correct
15 Inadmissible
6 Incorrect

Q-3
Effective arrangements of deduction of
Recognized Admissible
tax while payments
Fund
Ineffective arrangements of deduction
Admissible
of tax while payments
Unrecognized Effective arrangements of deduction of Admissible
tax while payments
Fund
Ineffective arrangements of deduction
Inadmissible
of tax while payments

Q-4
Salary Y/N Repairs Y/N Rent Y/N Freight Y/N
Account Account Expense Charges
 Account
20,000 N 1,000 Y 9,000 Y 5,000 Y
15,000 Y 10,000 Y 11,000 N 20,000 Y
40,000 N 15,000 Y 22,000 N 7,000 Y
5,000 Y 20,000 Y 77,000 N 2500 Y
55,000 N 3,000 Y 50,000 N 500 Y
135,000 49,000 169,000 53,000