Answer to Question #265674 in Financial Math for James

Question

Mr. Nyamindi and his wife run a store and he presented the following figures

for his income and expenditure accounts

Expenses

Purchase of groceries

6,215

Income

Sales

16,000

Wages to staff

3,912

Sale of

furniture

350

Staff costs

360

Charity wins

1,000

Electricity

613

Loss

2,066

New Oven

30

Rent

1500

Other consumables

270

Repairs and renewals

816

Insurance

430

Salary to wife

1,500

House hold expenses

2,500

Car expenses

1,000

TOTAL

19,416

19,416

The car and rental expenses are to be apportioned between the family and the business at the

ratio of 2:3 while insurance premiums include 100 shillings for Mr. Nyamindi’s life policy.

Calculate the adjusted profit for tax purposes: