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Can anyone explain the explain calculation of interest/discount..in schedule 13
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The additional information states that amount appearing in Interest and Discount account is after adjustment of Tax Provision, Provision for Bad debts, Loss of Sale of Investment and Rebate in bills discounted. However, Tax provision and provision for bad debts should appear separately in the Expenses part. Therefore, adjusting it with Interest and Discount is not a good practice. Moreover, Loss on sale of investment should appear in Schedule 14 as a negative figure. Now talking about Rebate on bills discounted; it is appropriately adjusted in Interest and Discount, so it will have no impact on Interest and Discount. Calculation can be as under: Interest and Discount 2045 Add back: Tax Provision 148 Add back: Provision for doubtful Debts 92 Add back: Loss on sale of Investments 12 Total 2297
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