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

Taxation of Melisk Ltd - Essay Example Melissa 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 also uses as her office.Melisk Ltd, has prepared the accounts as listed below for the period of account from 1st August 2011 to 31st January 2013The Income Statement showed the business made a net profit before tax of  £41,873 after taking into account the following information:Additional income from investments and property which was included in the Income Statement as shown below:1.  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 ALLOWANCES3.  The value of wr itten down values for the main pool capital allowances as at 1 August 2011 wasCapital loss on sale of shares  4,370Business rates for shop and workshop  1,200Rent of warehouse space  5,000Council tax   1,400Repairs to warehouse floor  950Repairs to flat above shop  550Customer entertainment  1,700Motor 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 Monthly’  110General Provision for Doubtful debts  250