Some years ago, after he graduated, Fred Murray (the musician) opened his own retail shop selling musical instruments. His recent profit for the 2021/22 tax year was £21,700 after having deducted the following expenses. He had already deducted drawings of £2,200 per month in calculating this profit figure. Entertainment of foreign suppliers £1,700 (of which £200 was for entertaining his own family) Penalty fees for non-submission of tax return, £851 Petrol costs of £2,000 (of which 20% was for private use) Painting of the interior of the musical shop, £550 Calculate for Fred the correct profits that he should include on his tax return for 2021/22.
Some years ago, after he graduated, Fred Murray (the musician) opened his own retail shop selling musical instruments. His recent profit for the 2021/22 tax year was £21,700 after having deducted the following expenses. He had already deducted drawings of £2,200 per month in calculating this profit figure. Entertainment of foreign suppliers £1,700 (of which £200 was for entertaining his own family) Penalty fees for non-submission of tax return, £851 Petrol costs of £2,000 (of which 20% was for private use) Painting of the interior of the musical shop, £550 Calculate for Fred the correct profits that he should include on his tax return for 2021/22.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Some years ago, after he graduated, Fred Murray (the musician) opened his own retail shop selling musical instruments. His recent profit for the 2021/22 tax year was £21,700 after having deducted the following expenses. He had already deducted drawings of £2,200 per month in calculating this profit figure.
- Entertainment of foreign suppliers £1,700 (of which £200 was for entertaining his own family)
- Penalty fees for non-submission of tax return, £851
- Petrol costs of £2,000 (of which 20% was for private use)
- Painting of the interior of the musical shop, £550
Calculate for Fred the correct profits that he should include on his tax return for 2021/22.
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