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Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
Free ACCA & CIMA online courses from OpenTuition
Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams
In Example 3 Ashley, why are selling expenses of 10000 ignored?
Because the proceeds of 375,000 are net of selling expenses of 10,000.
In more details, it means that gross proceeds were 385,000 minus selling expenses of 10,000 = 375,000.
As in the Question it is stated that £375,000 are net of selling expenses of £10,000.
(i.e, In simple words £10,000 is already deducted And £375,000 is the amount derived after deducting £10,000.)
Where did the 7000 come from in the last question of part 1?
Ashley had 7,000 gains from other asset disposals in the year, and therefore the AEA was split (where 7,000 went against the other chargeable gains and 5,300 to the disposal of the shares)
As in the question it is given that she has other chargeable gain of £7000, so the AEA of £12,300 will split in £7,000 and £5,300.
In Example 3 Ashley, why are selling expenses of 10000 ignored?
Because the proceeds of 375,000 are net of selling expenses of 10,000.
In more details, it means that gross proceeds were 385,000 minus selling expenses of 10,000 = 375,000.
As in the Question it is stated that £375,000 are net of selling expenses of £10,000.
(i.e, In simple words £10,000 is already deducted And £375,000 is the amount derived after deducting £10,000.)