"Wilma starts to trade on 1 October 2016.She made taxable profits of 9000 GBP for the first 9 months to 30 June 2017 and 30000 GBP for the year to 30 June 2018.
Year is 2017/2018,Basis period is 1/10/16-30/9/17,9000+30000*3/12=16500."
The above extract is taken from BPP study text.Can you please explain how he arrived at that figure of 16500?
Ask the Tutor ACCA TX-UK
Accounting date in second year
Firstly have you worked through the OT notes and lectures? If so you should then be able to answer this question.
2017/18 is the second tax year
Question - is there an accounting period that ends in that second tax year
Answer - Yes - the accounting period ending 30 June 2017. As this period is less than 12 months (it's a 9 month period) the basis of assessment becomes the profits of the first 12 months of trading - this will be all of the opening 9 month period plus 3 months of the second accounting period as shown in the answer above.
This will also create an overlap profit
Thanks Sir!Got it.
No actually I am using BPP study texts for F6 as I find OT notes too short and summarized for a first time learner.
However they serve good purpose for final revision.
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