Chapter 11 - 2.2 - Trading Income

Question 1

What do we add to the net profit as per the accounts?

Answer 1

Disallowed expenditure

Question 2

What do we less from the net profit as per the accounts?

Answer 2

• Capital allowances
• Income in accounts not taxable as trading income

Question 3

Since the directors are legally distinct from the company, there is no need to…

Answer 3

Make and adjustment for appropriation of profits (e.g salary paid to director or any expenditure relating to private use by a director)