Day: September 26, 2024

On 1 April 2023, Alex who is a sole trader paid £3,080 in local taxes for the year ending 31 March 2024.

This was an increase of 10% on the charge for the previous year.

What is the correct charge for local taxes in Alex’s profit and loss account for the year ended 31 December 2023?

Select ONE answer:

1. £2,870
2. £3,003
3. £3,010
4. £3,080

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This multiple-choice question is suitable for Accounting KS5 classes.

The answer is 3

1. Not correct
2. Not correct
3. Correct == > £3,080 × 9/12 + £3,080 * 1.1 * 3/12 = £3,010
4. Not correct

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