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Can anyone explain me the below image in that what is inadmissable exp differ from admissable exp. And how to calculate the business income......... With understanding examples of any....
Answers (6)
Best Answer
Generally net profit is equals to gross profit - expenses(by expenses we reduce our profit). Inadmissible expenses means expenses are not allowed to deduct for computing business profit. In net profit we already reduced such expenses so by adding that inadmissible expenses we can calculate the correct business profit. Admissible expenses means expenses are allowed to deduct. For example In Postage & Courier Expenses - Rs. 15000(out of which Rs.2000 for personal purpose) For computing NP if we take only Rs.13000 there is no problem, if we take 15000 (2000 belong to personal use) want to deduct as inadmissible expenses-2000 for getting actual business profit.
Thread Starter
Balachandar SWhy we are adding as inadmissable exp?????
Can u post second page of it ?
