hello sir, i went through your video and i tried to tackle a question i came across, and i got the answer, but i am not sure if its correct, can u please check it?
J has has always prepared acs to 31st march, and decides to cease on 30 sept 2014
profits:
ye 31st march 2012 18000
ye 31st march 2013 12000
ye 31st march 2014 9000
pe 30th sept 2014 3000
overlap profits b/f nil
this is what i did... (according to your method)
14/15
ye 31/3/12 18000
ye 31/3/13 12000
ye 31/9/14 3000
less overlap profit (0)
33000
13-14
CYB
a/c ye 31/3/14 9000
Is this correct?
i checked the answer and it looks totally different
ans:
11-12 ye 31/3/12 18000
12-13 ye 31/3/13 12000
13-14 ye 31/3/14 9000
14-15 6me 30/9/14 3000
less o/l nil
3000
Ask the Tutor ACCA TX-UK
Cessation of business
Hi David
I fear you have not understood this issue in the lecture from what you have just shown me!
Step 1 - Taxpayer ceases to trade on 30/9/14 so the final tax year is indeed 14/15
Step 2 - Go back to penultimate tax year and assess using CYB as you show:
13/14 CYB
A/C y/e 31/3/14 9000
Step 3 - Assess any remaining profits NOT yet assessed and deduct any overlap relief -
here you have gone horribly wrong I regret!
We have already assessed profits up to 31/3/14 - you have shown that in step 2 -
profits made before that will of course have been assessed using CYB in
EARLIER tax years, we now simply assess all remaining profits that have not yet
been assessed and that is only the period to 30/9/14:
14/15
period to 30/9/14 3000
less: overlap relief nil 3000
Hope this now makes sense!
ahan i see, i understand now
thank you very much! :)
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