Answer to Question #248701 in Economics for Prabh

Question

Income Tax Law ( India )

Mr. X owns a flour mill and some agricultural land. During the previous year 2017-18 he has shown a profit of 26 lacs from the business of flour mill. On scrutiny of accounts it was found that he has used 4,000 quintals of wheat produced in his own farms and cost of this wheat has not been debited to P & L account. The market price of the wheat during the season was 500 per quintal. Find out his agricultural and business income

Answer 1

His agricultural income is:

AI = 500*4,000 = 2,000,000.

And business income is:

BI = AI - Total cost.