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Hi,
Just wondering how the balancing charge and allowance fits in to the taxation computation.
My Kaplan CIMA study text book mentions you have to remove the accounting profit/loss from the trading profit and replace with the balancing charge/allowance (in a similar way to the tax depreciation replaces the accounting deprecation).
I dont understand this and when it would be used and cannot see this in the open tuition notes/lectures.
Thanks
Answer 7 in the taxation – saws the balancing allowance is £9,500. HOwever I calculate this as £8925. This is the sale proceeds £9,500 less NBV of £17,625 = gives a loss of £8925
Which is correct?
Answer 7 in the taxation – saws the balancing allowance is £9,500. HOwever I calculate this as £8925. This is the sale proceeds £9,500 less NBV of £17,625 = gives a loss of £8925
Which is correct?
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