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Avon Limited draws up accounts for the year ended 31 December 2011. The net profit per the accounts is $30,452 after charging the following items:



Avon Limited draws up accounts for the year ended 31 December 2011. The net profit
per the accounts is $30,452 after charging the following items:

Rent 12,000
Staff costs 42,000
Depreciation 5,560
Repair expenditure (Note 1) 8,200
Donations and gifts (Note 2) 700
Subscriptions 1,750
Lighting and heating 2,170
Bad debts (Note 3) 2,570
Travel costs 850
Administrative expenses (Note 4) 3,865

Note 1:

Redecoration costs 1,500
New office furniture 3,850
New roof 2,275
Replacing broken window with toughened glass 575

Note 2:

Payment for banner at local church fete 550
Donation to the Green Party 150

Note 3:

Increase in specific provision 5,100
Decrease in general provision (3,750)
Trade debts written off 1,220

Note 4: This amount includes a salary of £2,000 paid to Mrs Katharine Avon for
secretarial work.

She is the wife of the majority shareholder and a director of the company. Note 4 also
includes parking fines of £45 which she incurred on company business.

Calculate the adjusted trading profits of Avon Limited for the year ended 31 December

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Top Answer

Dear Student, Please accept the file, if you need any other... View the full answer

8549716.xlsx

Net Profit before tax as per the accounts
Add:
Disallowable expenditure charged in the accounts
Depreciation
Redecoration cost (improvement)
New office Furniture(enhacement)
New Roof(enhacement)...

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