- This topic has 2 replies, 2 voices, and was last updated 7 years ago by .
- You must be logged in to reply to this topic.
Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>
Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>
“Richard lives in an apartment which is situated above the restaurant , and one-fifth of the total property expense of £16200 relate to this apartment. repair : decorating the apartment £1320. The property was in a usable state when it was purchased. ”
I just wonder why this repair cost should be added? In my view, it is included in legal fees of renewing a short lease, thus we should not adjust it any more, I am confused about it.::>_<::
Decorating the apartment has got NOTHING to do with legal expenses! If an expense is incurred in relation to the privately used apartment then it is not a trading expense and will be added back in the adjustment of profits.
Thank you very much.:)