The entertainment account of S Ltd's business showed:
£
Staff tennis outing for 30 employees
1,800
2,000 tee shirts with firm's logo given to race runners
4,500
Advertising and sponsorship of an athletic event
2,000
Entertaining customers
7,300
Staff Christmas party (30 employees)
4,800
The amount to be added back in arriving at the taxable profits is:
The correct answer is: £7,300.
Amount spent on entertaining customers is not deductible in computing taxable trading income.
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