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The charge for entertaining in the profit and loss account of Mr Zeus, a trader, includes the following items:
1. Christmas gifts to customers (bottles of wine costing £15 each carrying an advertisement for the business)
2. The cost of a staff annual party at £80 per head
3. The cost of entertaining customers at a Christmas party totally £1,000
Problem 1: Which of these items will be disallowed in Mr Zeus's profit for Trading income purposes?
a) 1 and 3
b) 1, 2 and 3
c) 1 and 2
d) 2 and 3
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