1. Profile photo of ACCAstudent says

    answer to example 4:

    could you explain me why you are taking full 48,000 as the profit of 2015/16. 2,000 of this has been used in the previous tax year’s profit/loss calculation also. Why we are not deducting that 2,000 from 48,000 in 2015/16 profit calculation..

    • avatar says

      For CYB 2015, the 48000 is asses-able. What has already been assessed (i.e. 2000) in the previous year gets reassessed this year because this is the year from which the CYB assessment begins for this new firm .

      Upon cessation of trade this Overlapped profit of 2000 gets relieved. Refer to Cash Based Period lectures for more clarity on this one :)

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