Tx notes fa22 Final

June 2023 to March 2024 exams
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4
Motor car expenses:
John’s total mileage for the year was 12,000 miles. During the year he drove 2,000 miles on a 
touring holiday and estimates that the balance of his mileage is 20% private and 80% 
business. 
5
Sundry expenses:
John often uses his squash club as a place to take customers since several of them are keen 
squash players.
6 
Legal and professional charges:
Included in John’s accountancy fee is £950 for taxation services. Of this, £200 is for the normal 
taxation work involved in submitting accounts to the HMRC. The balance is in respect of 
calculating John’s capital gains tax liability following the disposal of some shares that he had 
owned.
7
Repairs and renewals:
Increase in allowance against specific debtors 
1,750 
Non trading loan written o
ff
200 
A trade debt recovered which had been written o
ff
the previous year 
(450) 
6,750 
John’s motor car expenses 
3,300 
Salesman’s motor car expenses 
1,200 
4,500
Donation to national charity 
50 
Donation to local political party 
100 
Subscription to chamber of commerce 
25 
A gift to a member of sta
ff
upon marriage 
45 
John’s squash club subscription 
250 
Advertising in trade press 
280 
750
The cost of renewing a 21 year lease in respect of the business premises 
250 
Accountancy 
3,050 
Debt collection 
300 
Legal fees in connection with an action by an employee for unfair dismissal 
1,150 
4,750 
Repairs to the o
ffi
ce photocopier 
175 
A new printer for the o
ffi
ce computer 
650 
The installation of new central heating for the o
ffi
ce 
2,200 
Decorating the o
ffi
ce 
475 
3,500

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