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Whinstone Ltd produces wedding stationery. It’s accounting net profit for the year ended 30 September 2008 was calculated as £125,340, including the following items:
£
Income
Property income 18,000
Bank interest received 1,250
Dividends from UK companies 160
Profit on disposal of non-current assets 235
Expenses
Wages and National Insurance 95,000
Rent and business rates 41,118
Depreciation 8,100
Transport costs 9,243
Lighting and heating 1,700
Repairs and renewals (Note 1) 4,670
Fines and penalties (Note 2) 1,372
Bad debts (Note 3) 730
Legal expenses (Note 4) 960
Gifts, donations and entertaining (Note 5) 2,880
Car leasing costs (Note 6) 4,800
Interest payable (Note 7) 2,230
Notes to the accounts
1 Repairs and renewals
The charge includes £2,000 for fitting protective covers over the windows and doors at
the warehouse to prevent burglary.
2 Fines and penalties £
Penalty for non-compliance with safety regulations 1,200
Employee’s parking fines 80
Theft of money by employee 92
3 Bad debts
Trade debt written off200
Increase in allowance for irrecoverable debts430
Loan to employee written off100
4 Legal expenses
Defending action in respect of alleged faulty goods 440
Purchase of leasehold premises 390
Debt collection costs130
5 Gifts, donations and entertaining
Gift Aid donation to national charity400
Whinstone Calendars sent to 20 customers300
Donation to local scout group100
Staff Christmas Party500
A “day at the races” for customers 1,300
Cost of video camera given to employee280
6 Car leasing costs
The list price of the car was £18,000.
7 Interest payable
On a loan to purchase new printing machinery 600
On a loan to pay for improvements to rented property 1,200
Overdraft interest on the business bank account 430
Required
Calculate the tax-adjusted trading profit for the year ended 30 September 2008.
Can someone show me how to answer this,.