Linda's income statement for the year ended 31 March 2022 is as follows: 

(a) Linda draws a salary of £200 per week from the business. This is included in the wages and salaries figure. 

(b) Repairs and renewals are as follows: 

(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 amount to £440 and £200 has been set aside as a general allowance (or provision) for bad and doubtful debts.

Compute Linda's trading profit (before deduction of any capital allowances) for the year ended 31 March 2022.  

Transcribed Image Text:

Sales Less: Cost of sales Gross profit Add: Rents receivable Bank interest receivable Profit on sale of non-current asset Less: Wages and salaries Business rates and insuran rance Heating and lighting Repairs and renewals Telephone Motor expenses Sundry expenses Bad and doubtful debts Credit card interest Loss on sale of non-current asset Depreciation Net profit for the year 4 1,200 80 310 22,620 1,750 2,170 4,280 880 3,250 1,650 640 120 70 2,500 82,500 37,200 45,300 1,590 46,890 39,930 6,960