Nana John is a self-employed as a hairdresser and lives in the UK. She has the following information available for the year ended 2021/22 Trading profit for the year ended 30 June 2021 Nana's statement of profit or loss for the year ended 30th June 2021 is as follows: Income Expenses Depreciation Motor Vehicle Professional fees Property expenses Purchases Other expenses Net profit Note 1 2 3 4 5 £ 2,635 2,200 1,650 12,900 4,700 16,550 £ 63,635 (40,635) 23,000 Nana John charges all the running expenses for her motor car to the business. During the year ended 30 June 2021 Nana drove a total of 8,000 miles of which 7,000 were for private journeys. The figure for professional fees includes £1,260 for legal fees in connection with the grant of a new five-year lease of parking spaces for customers' motor cars. Nana lives in a flat that is situated above her hairdressing studio and one-third of the total property expenses of £12,900 relate to this flat. During the year ended 30 June 2021 Nana took goods out of her hairdressing business for her personal use without paying for them and no entry has been made in the accounts to record this. The good costs £250 (an amount that has been deducted under purchases) and had a selling price of £450. The figure of other expenses of £16,550 include £480 for a fine in respect of health and safety regulations and £160 for trade subscription to Guild of small Hairdressers. Nana John uses her private telephone to make business telephone calls. The total cost of the private telephone for the year ended 30 June 2021 was £1200 and 20%
Nana John is a self-employed as a hairdresser and lives in the UK. She has the following information available for the year ended 2021/22 Trading profit for the year ended 30 June 2021 Nana's statement of profit or loss for the year ended 30th June 2021 is as follows: Income Expenses Depreciation Motor Vehicle Professional fees Property expenses Purchases Other expenses Net profit Note 1 2 3 4 5 £ 2,635 2,200 1,650 12,900 4,700 16,550 £ 63,635 (40,635) 23,000 Nana John charges all the running expenses for her motor car to the business. During the year ended 30 June 2021 Nana drove a total of 8,000 miles of which 7,000 were for private journeys. The figure for professional fees includes £1,260 for legal fees in connection with the grant of a new five-year lease of parking spaces for customers' motor cars. Nana lives in a flat that is situated above her hairdressing studio and one-third of the total property expenses of £12,900 relate to this flat. During the year ended 30 June 2021 Nana took goods out of her hairdressing business for her personal use without paying for them and no entry has been made in the accounts to record this. The good costs £250 (an amount that has been deducted under purchases) and had a selling price of £450. The figure of other expenses of £16,550 include £480 for a fine in respect of health and safety regulations and £160 for trade subscription to Guild of small Hairdressers. Nana John uses her private telephone to make business telephone calls. The total cost of the private telephone for the year ended 30 June 2021 was £1200 and 20%
Essentials of Business Analytics (MindTap Course List)
2nd Edition
ISBN:9781305627734
Author:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Chapter2: Descriptive Statistics
Section: Chapter Questions
Problem 1P: A Wall Street Journal subscriber survey asked 46 questions about subscriber characteristics and...
Related questions
Question
![Question 1
Nana John is a self-employed as a hairdresser and lives in the UK. She has the
following information available for the year ended 2021/22
Trading profit for the year ended 30 June 2021
Nana's statement of profit or loss for the year ended 30th June 2021 is as follows:
Income
Expenses
Depreciation
Motor Vehicle
Professional fees
Property expenses
Purchases
Other expenses
Net profit
Note
1
2
3
4
5
£
2,635
2,200
1,650
12,900
4,700
16,550
£
63,635
(40,635)
23,000
1. Nana John charges all the running expenses for her motor car to the business. During
the year ended 30 June 2021 Nana drove a total of 8,000 miles of which 7,000 were
for private journeys.
2. The figure for professional fees includes £1,260 for legal fees in connection with the
grant of a new five-year lease of parking spaces for customers' motor cars.
3. Nana lives in a flat that is situated above her hairdressing studio and one-third of the
total property expenses of £12,900 relate to this flat.
4. During the year ended 30 June 2021 Nana took goods out of her hairdressing
business for her personal use without paying for them and no entry has been made
in the accounts to record this. The good costs £250 (an amount that has been
deducted under purchases) and had a selling price of £450.
5. The figure of other expenses of £16,550 include £480 for a fine in respect of health
and safety regulations and £160 for trade subscription to Guild of small Hairdressers.
6. Nana John uses her private telephone to make business telephone calls. The total
cost of the private telephone for the year ended 30 June 2021 was £1200 and 20%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3fd9bb9b-67ac-463c-bd3e-ea8703757fa5%2F241acbf2-4acd-4185-a3ab-af98f90cd9d1%2Fp4rro76_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Question 1
Nana John is a self-employed as a hairdresser and lives in the UK. She has the
following information available for the year ended 2021/22
Trading profit for the year ended 30 June 2021
Nana's statement of profit or loss for the year ended 30th June 2021 is as follows:
Income
Expenses
Depreciation
Motor Vehicle
Professional fees
Property expenses
Purchases
Other expenses
Net profit
Note
1
2
3
4
5
£
2,635
2,200
1,650
12,900
4,700
16,550
£
63,635
(40,635)
23,000
1. Nana John charges all the running expenses for her motor car to the business. During
the year ended 30 June 2021 Nana drove a total of 8,000 miles of which 7,000 were
for private journeys.
2. The figure for professional fees includes £1,260 for legal fees in connection with the
grant of a new five-year lease of parking spaces for customers' motor cars.
3. Nana lives in a flat that is situated above her hairdressing studio and one-third of the
total property expenses of £12,900 relate to this flat.
4. During the year ended 30 June 2021 Nana took goods out of her hairdressing
business for her personal use without paying for them and no entry has been made
in the accounts to record this. The good costs £250 (an amount that has been
deducted under purchases) and had a selling price of £450.
5. The figure of other expenses of £16,550 include £480 for a fine in respect of health
and safety regulations and £160 for trade subscription to Guild of small Hairdressers.
6. Nana John uses her private telephone to make business telephone calls. The total
cost of the private telephone for the year ended 30 June 2021 was £1200 and 20%
![of this related to business telephone calls. The cost of the private telephone calls is
not included in the statement of profit or loss expenses of £40,635.
7. Capital allowances for the year ended 30 June 2021 are £810.
Other information
8. During the tax year 2021/22 Nana John received interest of £310 from an individual
savings accounts (ISA) and dividend of £1,200 from quoted company shareholdings.
Required:
(a) Calculate Nana John's tax adjusted trading profit for the year ended 30 June 2021
Note that your computation should commence with the net profit figure of £23,000 and
should list all of the items referred to in (1) to (8) indicating by the use of zero (0) any item
that do not require adjustment
(b) Calculate Nana John's income tax liability for the year 2021/22.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3fd9bb9b-67ac-463c-bd3e-ea8703757fa5%2F241acbf2-4acd-4185-a3ab-af98f90cd9d1%2Fkmjvpx_processed.jpeg&w=3840&q=75)
Transcribed Image Text:of this related to business telephone calls. The cost of the private telephone calls is
not included in the statement of profit or loss expenses of £40,635.
7. Capital allowances for the year ended 30 June 2021 are £810.
Other information
8. During the tax year 2021/22 Nana John received interest of £310 from an individual
savings accounts (ISA) and dividend of £1,200 from quoted company shareholdings.
Required:
(a) Calculate Nana John's tax adjusted trading profit for the year ended 30 June 2021
Note that your computation should commence with the net profit figure of £23,000 and
should list all of the items referred to in (1) to (8) indicating by the use of zero (0) any item
that do not require adjustment
(b) Calculate Nana John's income tax liability for the year 2021/22.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps with 1 images
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
![Essentials of Business Analytics (MindTap Course …](https://www.bartleby.com/isbn_cover_images/9781305627734/9781305627734_smallCoverImage.gif)
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
![Essentials of Business Analytics (MindTap Course …](https://www.bartleby.com/isbn_cover_images/9781305627734/9781305627734_smallCoverImage.gif)
Essentials of Business Analytics (MindTap Course …
Statistics
ISBN:
9781305627734
Author:
Jeffrey D. Camm, James J. Cochran, Michael J. Fry, Jeffrey W. Ohlmann, David R. Anderson
Publisher:
Cengage Learning
![Pfin (with Mindtap, 1 Term Printed Access Card) (…](https://www.bartleby.com/isbn_cover_images/9780357033609/9780357033609_smallCoverImage.jpg)
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning