Allowable expenses Which is not wholly and exclusively for bussiness purpose.

Appropriations Withdrawl of funds from a business Eg. Interest paid to debt holder or share holder salary drawing of partner etc. Excesssive salary Only that salary is allowable expense which is at the commercial rate for work performed Excessive will be disallowed expense Interest payable Interest on borrowing is allowable expense Capital expenditure Expenditure on capital asset is disallowed ame as it is depriciation! loss on disposal! amortisation are also disallowed. Car leasing "ental paid or lease charges paid for car is allowable expense if CO# emission $%&'g(km If )%&'g(km then %*+ of the rental paidor lease charges paid is disallowed expense ubscription and donation paid ,rade and professional association subscription is allowable expense for eg. ACCA annual subscription -O.A,IO. i. ii. iii. /Crieteria to be met0

,his must be wholly and exclusively for bussiness purpose /eg. 1romoting bussiness name0 2ust be local and reasonable is si3e 2ust be made to educational! religious! Cultural or benevolent organi3ation

I4 crieteria is met! then this is allowable expense I4 crieteria does not meet! then donation is considered as 56ift ais donation7

-onation to political parties is disallowed .on charitable gifts are disallowed Entertainment and gifts E.,E",AI.2E., Entertainment given to an employee is allowable expense 6I4, ,O E218O9EE 6ift to employee is allowable expense 6I4, ,O C: ,O2E" 6ift to customer only allowable if i. ii. iii. Cost ;<*' per head per year 6ift is not food or voucher exchangable for goods 6ift carries advertisement chit of business

I4 amount is )<*'! then all amount will be disallowable expense 8egal and professional charges Only that fees(charges are allowed that are paid for bussiness purpose Eg. 4ees to chase debts If expense is of capital nature then disallowed Eg. 8egal fees associated with the purchase of non current asset E=CE1,IO. 4ee to obtain debt finance is allowable Cost of registering patent is allowable Expense to renew lease is allowable >ad debt and Allowance for bad debts >ad debts /only trade ralated0 is allowable expense Increase in allowance is allowable expense -ecrease in alllowance is allowable expense

hort lease premium If premium is paid then it is allowable expense If premium is received then is allowable income >ut the following part of the income or expenxe will be disallowed -isallowed part? 1remium x/*%@n0(*'