Taxation of Melisk Ltd Essay Example | Topics and Well Written Essays - 500 words

Taxation of Melisk Ltd - Essay ExampleMelissa Kean is the MD of Melisk Ltd a cycling business operating in London, selling new and second hand bicycles and a range of cycling accessories. Customers include commuters, as well as local cycling enthusiasts and children. Melissa lives in a flat above the business premises which she in any case uses as her office.Melisk Ltd, has prepared the accounts as listed below for the period of account from 1st August 2011 to thirty-first January 2013The Income Statement showed the business made a net profit before tax of 41,873 after taking into account the following informationAdditional income from investments and situation which was included in the Income Statement as shown below1.Depreciation was calculated on a reducing balance method and amounted to 12,9002.Melissa sold a car and the loss on sale was 895. This was included as an expense in the income statement. You do not need to factor this into Capital Allowance calculations.CAPITAL ALLOW ANCES3.The determine of written down values for the main pool capital allowances as at 1 August 2011 wasCapital loss on sale of shares4,370Business rates for divulge and workshop1,200Rent of warehouse space5,000Council tax 1,400Repairs to warehouse floor950Repairs to flat above shop550Customer entertainment1,700Motor Expenses (includes the cost of running the company car which is also used by Melissa privately for approximately 20% of the time)1,200Subscription to magazine, Cycling Monthly110General Provision for Doubtful debts250