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Following are the relevant balances extracted from the books of a company. You required to calculate the remuneration of the managing director at 5% of the Net Profit after charging such commission. Net Profit- 38,786 ; Items considered for arriving at the above profit-Provision Taxation 30,000 ; MD Remuneration 4,000; Depreciation Inadmissible 2,880. 12,000 ; Preliminary Expenses?
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Following are the relevant balances extracted from the books of a comp...
Calculation of Managing Director's Remuneration
Net Profit Calculation:
- Profit before charging MD Remuneration and Depreciation Inadmissible: 38,786 + 4,000 + 2,880 = 45,666
- Less: Provision for Taxation: 30,000
- Net Profit after Taxation: 15,666
MD Remuneration Calculation:
- 5% of Net Profit after charging commission: 5/100 * 15,666 = 783.3
Therefore, the Managing Director's Remuneration is INR 783.3.
Preliminary Expenses
Preliminary Expenses are the expenses incurred in connection with the formation of a company, such as registration fees, legal charges, printing costs, etc. These expenses cannot be treated as revenue expenses and are therefore treated as capital expenditure. Preliminary expenses are written off over a period of time and are charged to the profits of the company.
Net Profit Calculation:
- Profit before charging MD Remuneration and Depreciation Inadmissible: 38,786 + 4,000 + 2,880 = 45,666
- Less: Provision for Taxation: 30,000
- Net Profit after Taxation: 15,666
MD Remuneration Calculation:
- 5% of Net Profit after charging commission: 5/100 * 15,666 = 783.3
Therefore, the Managing Director's Remuneration is INR 783.3.
Preliminary Expenses
Preliminary Expenses are the expenses incurred in connection with the formation of a company, such as registration fees, legal charges, printing costs, etc. These expenses cannot be treated as revenue expenses and are therefore treated as capital expenditure. Preliminary expenses are written off over a period of time and are charged to the profits of the company.
Community Answer
Following are the relevant balances extracted from the books of a comp...
CALCULATION OF PROFITS as per U/S 349
Profit after tax 38,786
+ provision for tax 30,000
+ preliminary expenses 12,000
+ Directors remuneration 4000
if already charged
less, Inadmissible
depreciation -2880
PROFITS 81,906
Therefore, MD remuneration 5% of
81,906 ×5% = 4,095
Profit after tax 38,786
+ provision for tax 30,000
+ preliminary expenses 12,000
+ Directors remuneration 4000
if already charged
less, Inadmissible
depreciation -2880
PROFITS 81,906
Therefore, MD remuneration 5% of
81,906 ×5% = 4,095
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Following are the relevant balances extracted from the books of a company. You required to calculate the remuneration of the managing director at 5% of the Net Profit after charging such commission. Net Profit- 38,786 ; Items considered for arriving at the above profit-Provision Taxation 30,000 ; MD Remuneration 4,000; Depreciation Inadmissible 2,880. 12,000 ; Preliminary Expenses?
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Following are the relevant balances extracted from the books of a company. You required to calculate the remuneration of the managing director at 5% of the Net Profit after charging such commission. Net Profit- 38,786 ; Items considered for arriving at the above profit-Provision Taxation 30,000 ; MD Remuneration 4,000; Depreciation Inadmissible 2,880. 12,000 ; Preliminary Expenses? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Following are the relevant balances extracted from the books of a company. You required to calculate the remuneration of the managing director at 5% of the Net Profit after charging such commission. Net Profit- 38,786 ; Items considered for arriving at the above profit-Provision Taxation 30,000 ; MD Remuneration 4,000; Depreciation Inadmissible 2,880. 12,000 ; Preliminary Expenses? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Following are the relevant balances extracted from the books of a company. You required to calculate the remuneration of the managing director at 5% of the Net Profit after charging such commission. Net Profit- 38,786 ; Items considered for arriving at the above profit-Provision Taxation 30,000 ; MD Remuneration 4,000; Depreciation Inadmissible 2,880. 12,000 ; Preliminary Expenses?.
Following are the relevant balances extracted from the books of a company. You required to calculate the remuneration of the managing director at 5% of the Net Profit after charging such commission. Net Profit- 38,786 ; Items considered for arriving at the above profit-Provision Taxation 30,000 ; MD Remuneration 4,000; Depreciation Inadmissible 2,880. 12,000 ; Preliminary Expenses? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Following are the relevant balances extracted from the books of a company. You required to calculate the remuneration of the managing director at 5% of the Net Profit after charging such commission. Net Profit- 38,786 ; Items considered for arriving at the above profit-Provision Taxation 30,000 ; MD Remuneration 4,000; Depreciation Inadmissible 2,880. 12,000 ; Preliminary Expenses? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Following are the relevant balances extracted from the books of a company. You required to calculate the remuneration of the managing director at 5% of the Net Profit after charging such commission. Net Profit- 38,786 ; Items considered for arriving at the above profit-Provision Taxation 30,000 ; MD Remuneration 4,000; Depreciation Inadmissible 2,880. 12,000 ; Preliminary Expenses?.
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Following are the relevant balances extracted from the books of a company. You required to calculate the remuneration of the managing director at 5% of the Net Profit after charging such commission. Net Profit- 38,786 ; Items considered for arriving at the above profit-Provision Taxation 30,000 ; MD Remuneration 4,000; Depreciation Inadmissible 2,880. 12,000 ; Preliminary Expenses?, a detailed solution for Following are the relevant balances extracted from the books of a company. You required to calculate the remuneration of the managing director at 5% of the Net Profit after charging such commission. Net Profit- 38,786 ; Items considered for arriving at the above profit-Provision Taxation 30,000 ; MD Remuneration 4,000; Depreciation Inadmissible 2,880. 12,000 ; Preliminary Expenses? has been provided alongside types of Following are the relevant balances extracted from the books of a company. You required to calculate the remuneration of the managing director at 5% of the Net Profit after charging such commission. Net Profit- 38,786 ; Items considered for arriving at the above profit-Provision Taxation 30,000 ; MD Remuneration 4,000; Depreciation Inadmissible 2,880. 12,000 ; Preliminary Expenses? theory, EduRev gives you an
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