Justin, who keeps books by single entry, had submitted his Income-tax returns to Income-tax authorities showing his incomes to be as follows : $. Year ending March 31, 2010 = 33,075 Year ending March...


Justin, who keeps books by single entry, had submitted his Income-tax returns to Income-tax<br>authorities showing his incomes to be as follows :<br>$.<br>Year ending March 31, 2010 = 33,075 Year ending March 31, 2013 = 61,875<br>Year ending March 31, 2011 = 33,300 Year ending March 31, 2014 = 54,630<br>Year ending March 31, 2012 = 35,415 Year ending March 31, 2015 = 41,670<br>The Income tax Officer is not satisfied as to the accuracy of the incomes returned. You are appointed<br>as a consultant to assist in establishing correctness of the incomes returned and for that purpose you<br>are given the following information :<br>(a) Business liabilities and assets at March 31, 2009 were : Creditors : $ 32,940, Furniture &<br>Fittings : $ 22,500, Stock: $24,390 (at selling price which is 25% above cost), Debtors :$<br>11,025, Cash at Bank and in hand $ 15,615.<br>(b) Justin owed his brother $ 18,000 on March 31, 2009. On February 15, 2012 he repaid this<br>amount and on April 1, 2014, he lent his brother $ 13,500.<br>(c) Justin owns a house which he purchased in 2003 for 90,000 and a car which he purchased on<br>October 2010 for $ 33,750. In January, 2014, he bought debentures in X Ltd. Having face value<br>of $ 40,000 for $ 33,750.<br>(d) In May, 2014 a sum of $ 13,500 was stolen from his house.<br>(e) Justin estimates that his living expenses have been 2009-10-$ 13,500; 2010-11- $ 18,000;<br>2011-12-$ 27,000; 2012-13, 2013-14 and 2014-2015- $ 31,500 p.a. exclusive of the amount<br>stolen.<br>(f) On March 31, 2015 business liabilities and assets were : Creditors $ 37,800, Furniture, Fixtures<br>and Fittings $ 40,500, Stock $ 54,330 (at selling price with a gross profit of 25%), Debtors $<br>26,640, Cash-in-hand and at Bank $ 29,025.<br>From the information submitted, prepare statements showing whether or not the incomes declared by<br>Justin are correct.<br>

Extracted text: Justin, who keeps books by single entry, had submitted his Income-tax returns to Income-tax authorities showing his incomes to be as follows : $. Year ending March 31, 2010 = 33,075 Year ending March 31, 2013 = 61,875 Year ending March 31, 2011 = 33,300 Year ending March 31, 2014 = 54,630 Year ending March 31, 2012 = 35,415 Year ending March 31, 2015 = 41,670 The Income tax Officer is not satisfied as to the accuracy of the incomes returned. You are appointed as a consultant to assist in establishing correctness of the incomes returned and for that purpose you are given the following information : (a) Business liabilities and assets at March 31, 2009 were : Creditors : $ 32,940, Furniture & Fittings : $ 22,500, Stock: $24,390 (at selling price which is 25% above cost), Debtors :$ 11,025, Cash at Bank and in hand $ 15,615. (b) Justin owed his brother $ 18,000 on March 31, 2009. On February 15, 2012 he repaid this amount and on April 1, 2014, he lent his brother $ 13,500. (c) Justin owns a house which he purchased in 2003 for 90,000 and a car which he purchased on October 2010 for $ 33,750. In January, 2014, he bought debentures in X Ltd. Having face value of $ 40,000 for $ 33,750. (d) In May, 2014 a sum of $ 13,500 was stolen from his house. (e) Justin estimates that his living expenses have been 2009-10-$ 13,500; 2010-11- $ 18,000; 2011-12-$ 27,000; 2012-13, 2013-14 and 2014-2015- $ 31,500 p.a. exclusive of the amount stolen. (f) On March 31, 2015 business liabilities and assets were : Creditors $ 37,800, Furniture, Fixtures and Fittings $ 40,500, Stock $ 54,330 (at selling price with a gross profit of 25%), Debtors $ 26,640, Cash-in-hand and at Bank $ 29,025. From the information submitted, prepare statements showing whether or not the incomes declared by Justin are correct.
Jun 11, 2022
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