The tax authorities seek your assistance to estimate the profit made in the year ended 31 December

Question:

The tax authorities seek your assistance to estimate the profit made in the year ended 31 December 2011 by a retail shop belonging to Chris Jones. They inform you as follows:

(i) Chris has no income other than from his shop.

(ii) Considering the style and standard of living Chris’s living expenses should be at least £1,500 per month.

(iii) The assets and liabilities of his shop are ascertained as stated on the right.

(iv) In June 2011 Chris introduced additional capital of £20,000 left to him by his late uncle.

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Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

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Question Posted: Aug 28, 2023 08:30 AM

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The tax authorities seek your assistance to estimate the profit made in the year ended 31 December

Question:

As at 31 December Non-current assets at wdv Inventory at cost Trade receivables Cash and bank balance Trade payables 2010 4 2011 £ 180,000 215,000 284,200 326,600 16,500 21,400 11,400 26,800 (165,800) (158,500)

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As at 31 December Noncurrent assets Inventory Trade receivables Cash and bank Trade ...View the full answer

Financial Accounting An Introduction

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