Cash basis for small business

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June 22, 2023 at 5:01 am #687314
Claire91
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Dear tutor,
In example 7 ( page 64 in the study notes). Why the motor expense payment of 3,600 *60% is not deducted from the adjusted trading profit ? ( cash basis)
Thank you
June 25, 2023 at 9:37 am #687412
JillyB
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If you are suing the cash basis then you only claim for things you have spent money on and there is very little adjusting of profits.
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