income
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Victoria has the following property income in 2022/23.
i) She let a house to tenants throughout the year at a monthly rate of £800. She
incurred the following expenditure during the year
Insurance
Cleaning
Boiler service
Replacement of windows with improved widows
Letting agent fees
600
200
350
5,250
900
ii) She let out another house for part of the year. It was first let to tenants from 1 June
2022 at a monthly rent of £950. She paid £250 to advertise the property before it was
let. During the year she paid £400 insurance in respect of the property.
iii) On 6 April 2022 she let out a leasehold office building. The tenant paid £12,000 for
the grant of a 12-year lease, in addition to annual rental of £18,000. During the year
Victoria paid £900 insurance in respect of the building.
iv) Throughout the year she let out a room in the house she lives in for £9.600 per
annum. The expenses relating to the room in the year were £1,200.
Required:
a) Calculate Victoria's property business profits for the year 2022/23.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F27c9ffc8-caf5-4a01-9236-94db3faf410c%2Fded46383-0c03-411b-b3ea-d346e9b14b06%2Ftndlh5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Victoria has the following property income in 2022/23.
i) She let a house to tenants throughout the year at a monthly rate of £800. She
incurred the following expenditure during the year
Insurance
Cleaning
Boiler service
Replacement of windows with improved widows
Letting agent fees
600
200
350
5,250
900
ii) She let out another house for part of the year. It was first let to tenants from 1 June
2022 at a monthly rent of £950. She paid £250 to advertise the property before it was
let. During the year she paid £400 insurance in respect of the property.
iii) On 6 April 2022 she let out a leasehold office building. The tenant paid £12,000 for
the grant of a 12-year lease, in addition to annual rental of £18,000. During the year
Victoria paid £900 insurance in respect of the building.
iv) Throughout the year she let out a room in the house she lives in for £9.600 per
annum. The expenses relating to the room in the year were £1,200.
Required:
a) Calculate Victoria's property business profits for the year 2022/23.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![FINANCIAL ACCOUNTING](https://compass-isbn-assets.s3.amazonaws.com/isbn_cover_images/9781259964947/9781259964947_smallCoverImage.jpg)
![Accounting](https://www.bartleby.com/isbn_cover_images/9781337272094/9781337272094_smallCoverImage.gif)
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
![Accounting Information Systems](https://www.bartleby.com/isbn_cover_images/9781337619202/9781337619202_smallCoverImage.gif)
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
![Horngren's Cost Accounting: A Managerial Emphasis…](https://www.bartleby.com/isbn_cover_images/9780134475585/9780134475585_smallCoverImage.gif)
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
![Intermediate Accounting](https://www.bartleby.com/isbn_cover_images/9781259722660/9781259722660_smallCoverImage.gif)
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
![Financial and Managerial Accounting](https://www.bartleby.com/isbn_cover_images/9781259726705/9781259726705_smallCoverImage.gif)
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education