Income Tax Accounting Quiz Summer 2026 Question Paper

Question 01: (a) What do you mean by inadmissible expense? What is the effect of it on the income statement? Explain the necessary adjustment for it. (b) Write short notes on Balancing Charge. Question 02: The Profit and Loss Account of Mr. Harun's sole-trader ship business results net income of Taka 8,20,000 for the accounting year ended on June 30, 2025 Profit and Loss Account | Debit | Tk. | Credit | Tk. | | :--------------------- | :--------- | :------------------ | :------------ | | Salary | 430,000 | Gross Profit | 20,10,000 | | Commission | 25,000 | Interest on Securities | 100,000 | | Miscellaneous expenses | 20,000 | Interest on bank Deposit | 25,000 | | Rent of Premises | 100,000 | Dividend on share | 15,000 | | Fund Embezzlement | 25,000 | | | | Donations | 200,000 | | | | Bad debt | 50,000 | | | | Insurance Premium | 47,000 | | | | Depreciation Expense | 35,000 | | | | Provision for income tax | 45,000 | | | | Repair expense | 20,000 | | | | License renewal fee | 5,000 | | | | Penalty and Fire | 73,000 | | | | Bonus | 100,000 | | | | Royalty | 115,000 | | | | Interest on Bank Loan | 30,000 | | | | Household expenses | 10,000 | | | | Net Profit | 8,20,000 | | | | | 21,50,000 | | 21,50,000 | Other Information: (a) Salary includes Taka 120,000 paid to an employee during December 1, 2024 to June 30, 2025 who failed to submit return within tax day nor get extension; (b) Fund embezzlement occurred during office hour; (c) One-fourth of the premise is used as residence by Mr. Harun; (d) Donations includes Taka 1,47,000 paid to a charitable hospital that is approved as per the Sixth Schedule of ITA, 2023; (e) Tk. 7,700 of insurance premium is the payment for policy purchased in the owner's name; (f) Tax depreciation amounts to Taka 52,000; (g) Commission includes Tk. 10,600 paid to shareholder director. (h) Miscellaneous expenses includes Tk. 16,000 payment for acquisition of trade-mark (i) During the year Tk. 31,000 of bad debts were recovered which was previously shown as bad debt expense. Examine the given information to compute the income from business or profession and total taxable income for the year considering the given information.