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Assuming decoration for the shop as a improvement in the adjusted trading profit

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Assuming decoration for the shop as a improvement in the adjusted trading profit

  • This topic has 1 reply, 2 voices, and was last updated 2 years ago by JillyB.
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  • August 5, 2023 at 8:23 pm #689422
    atifghaznavi
    Participant
    • Topics: 1
    • Replies: 0
    • ☆

    In the only example available in the chapter 4 for adjusted trading profit for individuals, I assumed the amount of 2,200 for decorating the shop as an improvement whilst solving for the answer and, my answer made a difference of exactly the amount of 2,200 comparing with that of the tutor’s answer. We were told by the tutor herself that it is a long debate on deciding the decoration as an expense or an improvement so, we have to note it in the answer telling the examiner what we’re assuming the amount as. So, should I be confident telling myself that I got the answer in the first try without watching that how the tutor did it?

    August 6, 2023 at 3:08 pm #689465
    JillyB
    Keymaster
    • Topics: 0
    • Replies: 899
    • ☆☆☆☆

    You should watch how the tutor did it and then make sure that you always write down ALL your workings and any assumptions that you make when asnwering a question

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