9.6 Linda's income statement for the year ended 31 March 2017 is as follows: Sales 82,500 Less:...
Question:
9.6 Linda's income statement for the year ended 31 March 2017 is as follows: Sales 82,500 Less: Cost of sales 37,200 Gross profit 45,300 Add: Rents receivable 1,200 Bank interest receivable 80 Profit on sale of non-current asset 310 1,590 46,890 Less: Wages and salaries 22,620 Business rates and insurance 1,750 Heating and lighting 2,170 Repairs and renewals Telephone 4,280 880 Motor expenses 3,250 Sundry expenses 1,650 Bad and doubtful debts 640 Credit card interest 120 Loss on sale of non-current asset 70 Depreciation 2,500 39,930 Net profit for the year 6,960
(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: Decoration of business premises Installation of new improved heating system Minor repair 400 3,800 80 4,280
(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 capital allowances) for the year ended 31 March 2017.
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