Linda draws a salary of £250 per week from the business. This is included in the wages and salaries figure. b) Repairs and renewals are as follows: £ Decorating of business premises 380 Installation of new improved heating system 3,700 Minor repair 200 4,280 c) It has been agreed with HMRC that one-quarter of telephone costs and one-fifth of motor expenses relate to private use. d) Sundry expenses include business entertaining of£520. e) Trade debts written off in the year amounted to £440 and £200 has been set aside as a general allowance (or provision) for bad and doubtful debts. Required: Compute Linda’s tax-adjusted trading profit (before capital allowances)for the year ended 31 March 2021.
Notes:
a) Linda draws a salary of £250 per week from the business. This is included in the wages and salaries figure.
b) Repairs and renewals are as follows: £
Decorating of business premises 380
Installation of new improved heating system 3,700
Minor repair 200
4,280
c) It has been agreed with HMRC that one-quarter of telephone costs and one-fifth of motor expenses relate to private use.
d) Sundry expenses include business entertaining of£520.
e) Trade debts written off in the year amounted to £440 and £200 has been set aside as a general allowance (or provision) for bad and doubtful debts.
Required:
Compute Linda’s tax-adjusted trading profit (before capital allowances)for the year ended 31 March 2021.
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