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The Small Pools WDA
Where the tax wdv of either the main pool or special rate pool prior to calculating the WDA is less than £1,000, the entire balance may be taken as a WDA in that period. The £1,000 is prorated if the accounting period is other than 12 months.if you see example 2 of chapter 5, the motor car is sold leaving a balancing allowance of 4,200. the accounting period is 12 month and the capital allowance is the 70% of the full balancing allowance. if the car wasn’t used for the private use, the capital allowance would be the full amount of 4,200.
so, i guess the same must be applied to the practice question no.11. the scenario is the same, accounting period is of 12 months and after selling the motor car it leaves a balancing allowance. the only difference is in example 2 the car was partly used for private use and in practice question no.11. the car is fully used for business purpose.
for example: inorder to obtain sufficient evidence auditor procedure before or after inventory count during final audit. is it necessary to write the audit procedure in a sequence or can v write randomly ?
My question is from Kaplan Revision Kit, Question No. 35 ASOP CO.(DEC 09)
the question doesn’t state whether the licence fee is tax allowable or not. But, in solution part (a) there has been taken tax saving on the licence fee.
In part (b) the question ask for calculating NPV. in solution half of the calculation has been done at Discount factor of 11% and the half portion is taken from part (a) which has been calculated at the discount factor of 6 %. why ?
what if I do the part (b) calculation entirely taking D.F of 11%?
thankyou Sir, for your help.
In question no. 34, Basril, from kaplan revision kit. the PI is calculated taking PV of the savings divided by investment. but the formula of PI in the book is given NPV divided by Investment.
the left over capital is also not utilised as according to text book, why ? as the left over capital need to be multiplied by PI, its not done in revision kit.