You are presented with the accounts of Chorley Ltd for the year to 31 December 2020...

 

Transcribed Image Text:

You are presented with the accounts of Chorley Ltd for the year to 31 December 2020 (see below). Chorley Ltd runs a small printing business and the managing director wishes to know the amount of the companies' Adjusted trading profit for the year ended 31 December 2020. Gross profit from trading Profit on sale of business premises (1) Advertising Irrecoverable Debts Depreciation Light and heat Miscellaneous expenses (2) Motor car expenses (3) Rates Repairs and renewals (4) Staff wages (5) Telephone Profit before tax Subscription to Printers' Association Contribution to local Enterprise Agency Gifts to customers: £ 45 50 75 £ £ 642 75 Notes The profit on the sale of premises relates to the sale of a small freehold industrial unit in which the company stored paper before building the extension. Miscellaneous expenses included: 2,381 372 347 555 1,057 2,598 12,124 351 Required: Calculate Chorley Ltd.'s tax liability for year ended 31 December 2019. Company calendars costing £7.50 each Two food hampers 95 A director uses the motor car 5% for business purposes and 25% for private purposes. Repairs and renewals comprise the following expenditure: Refurbishing second hand press before it could be used in the business 522 Redecorating administration offices 429 Building extension to enlarge paper store Staff wages includes an amount of £182 for a staff Christmas lunch. £ 25,620 1,750 27,370 1,647 2.598 20,502 6,868 You should indicate by the use of zero any items in the accounts for which no adjustment is required when adjusting the profit. You are presented with the accounts of Chorley Ltd for the year to 31 December 2020 (see below). Chorley Ltd runs a small printing business and the managing director wishes to know the amount of the companies' Adjusted trading profit for the year ended 31 December 2020. Gross profit from trading Profit on sale of business premises (1) Advertising Irrecoverable Debts Depreciation Light and heat Miscellaneous expenses (2) Motor car expenses (3) Rates Repairs and renewals (4) Staff wages (5) Telephone Profit before tax Subscription to Printers' Association Contribution to local Enterprise Agency Gifts to customers: £ 45 50 75 £ £ 642 75 Notes The profit on the sale of premises relates to the sale of a small freehold industrial unit in which the company stored paper before building the extension. Miscellaneous expenses included: 2,381 372 347 555 1,057 2,598 12,124 351 Required: Calculate Chorley Ltd.'s tax liability for year ended 31 December 2019. Company calendars costing £7.50 each Two food hampers 95 A director uses the motor car 5% for business purposes and 25% for private purposes. Repairs and renewals comprise the following expenditure: Refurbishing second hand press before it could be used in the business 522 Redecorating administration offices 429 Building extension to enlarge paper store Staff wages includes an amount of £182 for a staff Christmas lunch. £ 25,620 1,750 27,370 1,647 2.598 20,502 6,868 You should indicate by the use of zero any items in the accounts for which no adjustment is required when adjusting the profit.

Answer rating: 100% (QA)

A B IC SI D AB C Particular Gross Profit Profit on ... View the full answer