Mr. Lee started in business on 1 January 2016 with 35,000 in a bank account. Unfortunately he
Question:
Mr. Lee started in business on 1 January 2016 with £35,000 in a bank account. Unfortunately he did not keep proper books of account. He is forced to submit a calculation of profit for the year ended 31 December 2019 to the Income Tax Department.
He ascertains that at 31 December 2016 he had stock valued at cost £6,200, a van which had cost £6,400 during the year and which had depreciated during the year by £1,600, debtors of £15,200, expenses prepaid of £310, a bank balance of £33,490, a cash balance £270, trade creditors £7,100, and expenses owing £640.
His drawings were:
Cash £400 per week for 50 weeks
Cheque payments £870.
Required:
Prepare a statements to show the profit or loss for the year ended December 31, 2019.
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill