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Balancing Charge

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Balancing Charge

  • This topic has 3 replies, 3 voices, and was last updated 10 years ago by fazeel93.
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  • November 27, 2015 at 12:05 pm #285683
    fazeel93
    Member
    • Topics: 71
    • Replies: 49
    • ☆☆

    Does Balancing Charge( negative balance) increase capital allowance figure or decrease it?

    November 27, 2015 at 12:46 pm #285687
    Mike
    Participant
    • Topics: 11
    • Replies: 16
    • ☆

    I think Balancing Charge occurs when your Disposal Proceeds exceeds your WDV(a profit on disposal), hence it reduces your capital allowance to have a net effect on your adjusted Trading Income.

    November 27, 2015 at 2:55 pm #285728
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    A balancing charge will reduce the capital allowances of the accounting period

    November 28, 2015 at 7:28 pm #286012
    fazeel93
    Member
    • Topics: 71
    • Replies: 49
    • ☆☆

    Thanks tax tutor

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