Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › bpp kit question 61
- This topic has 3 replies, 2 voices, and was last updated 2 years ago by JillyB.
- AuthorPosts
- October 24, 2022 at 9:12 am #669800
61. Olive is self-employed preparing her accounts to 5 April each year. She claims capital allowances on a motor car used in her business. The motor car has a CO2 emission rate of 145 grams per kilometre, with 40% of Olive’s mileage for private purposes. The motor car had a tax written down value of 12,000 at 6 April 2021. Olive sold the motor car for 6000 on 1 November 202.
what amount of capital allowances can olive claim in respect of the motor car for the tax year 2021.
in the answer, the correct answer is 3600
however according to me 3600 is the balance remaining in the pool on which a rate of 6% is applied to come up with capital allowance amount of 216, and it is what the question is asking for.so shouldnt the correct answer be 216? or am i missing something
October 24, 2022 at 10:56 am #669818TWDV 12000
sold (6000)BA (6000) x 60% business use = £3600 ba in the capital allowances computation
October 28, 2022 at 11:23 am #670191Thank you.
I get that. However shouldn’t a rate of 6% charged to that balance of 3600? To calculate capital allowance to be claimed..which gives 216.October 31, 2022 at 11:56 am #670409Glad you understand how I got to £3600 – that is the allowance. It therefore removes the asset from the capital allowances computation – giving the business all the final allowances due.
- AuthorPosts
- You must be logged in to reply to this topic.