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Ques – Ae and Bee commenced in partnership on 1 July 2018 preparing accounts to 30 April. Cae joined as a partner on 1 July 2020. Profits were always shared equally. The partnership’s trading profits since the commencement of trading have been as follows:
£
Period ended 30 April 2019 54,000
Year ended 30 April 2020 66,000
Year ended 30 April 2021 87,000Ques – What is Ae’s trading income assessment for the tax year 2019/20?
Answer 2019/20
Second year, short period of account (first 12 months trading)
1 July 2018 to 30 April 2019
£54,000 ? ½ 27,000
1 May 2019 to 30 June 2019
£66,000 ? ½ × 2/12 5,500My question here is : Isnt the tax period ended 5th April 2019 then why have they included this 2 months i.e, May and June 2019 also ?
And yes sir I have worked my way through your lectures first
Ques – Trading profit
Ronald commenced self-employment on 1 January 2020. He had a tax adjusted trading
profit of £3,840 for the four-month period ended 30 April 2020, and £12,060 for the year
ended 30 April 2021. These figures are before taking account of capital allowances.
The only item of plant and machinery owned by Ronald is his motor car, which cost
£24,000 on 1 September 2020My question – why was the whole 11k is done 8/12 shouldnt only capital allowance be done that?
Yeah and I am not understanding how I am suppose to go ahead from this ?
can you please advice?Sir, this question is from BPP revision kit, apologizes for not mentioning it earlier.
its an MCQ question :
Starts with Creative accounting measures ..
and in this the last oneHi Sir,
To add on the above question , for goodwill calculation while calculating Retained earning we have deducted 2000*6/12 -3000 , however a question above to it “Prodigal Co” – in BPP revision kit , we have added the profit , Can you please help me understand what changes in the CY question here?Hi Sir,
I want to add my question as well on the above question:
1) Why have they taken the Bf figures and not the C/f because a question “highveldt Co” in which they have consolidated the retained earnings for Parent and for subsdiary have used the c/f figures.
2)Why in the above question in cash and equivalent 900 is added , because the money is deducted from one company and added to another (kiind off what we do in Intercompany sales ) we deduct it to nullify the effect , here also as per my understanding it should not be included,Thanks in advance!
so what about the period prior to april ? no amortization/depreciation would be charged to it ?
there is no where mentioned in the question that it is easily sold. because as per my understanding we makes a provision until and unless it is specifically mentioned that it can be sold easily.
Please help me understand it better, thanks!
The question mentions the 10 years and not 10% and moreover the retention period they want for 4 or more years, I am not too sure why did they used 10% of it ?
It is at true/false in BPP kit.
And as per your above explaination for 1st scenario it will increase the gearing ratio and not decrease, but as per answer provided it was decreased, could you please explain a bit further
Hi, Can you please help me calculate the exchange difference in the above question ?
I had mu FM exam today but due to technical issue I was not able to give it ..
Hi Kim,
thanks for explaining that 🙂
We have now received the dockets however I remember it was not required in sept 2020, so do we need to print it out and keep it us ?
