- This topic has 5 replies, 2 voices, and was last updated 7 years ago by
.
- Posts
Kaplan kit mcqs
198) received bank interest received of 6,000. Bank interest receivable of 2,000 and 1,000 was accrued.
I get it that we will add 6,000+1,000 but why do we deduct 2000?
199) interest received 1,800. Amount of interest receivable 2,000.
We ignored 1,800 and added 2,000.
Why?Both the question asked about taxable total profits.
I don’t have the kaplan kit but in the first question YOU have to calculate the interest receivable for the accounting period by adjusting the amount of interest received by BOTH the opening and closing accrued amounts
In the second question the question has given you the amount received in the accounting period and the amount receivable for the accounting period and you simply have to choose the correct figure to use – the receivable figure!In the year ended 31 March 2017, Easter Ltd had £100,000 of tax adjusted trading profits before capital allowances, and received bank interest received of £6,000 and dividends of £4,500. It also made qualifying charitable donations of £3,200. Capital allowances for the year were £2,000.
Bank interest receivable of £2,000 and £1,000 was accrued at 31 March 2016 and 31 March 2017 respectively.
What are Easter Ltd’s taxable total profits for the year ended 31 March 2017?
A £101,800
B £99,800
C £104,300
D £103,000Kindly help me with this. Im not sure how to calculate interest receivable.
You have been given some work to complete, which includes a draft calculation of taxable total profits for a client, Trains Ltd.
Your manager has asked you to check the following calculation and make any corrections
necessary.Year ended 31 December 2016 £
Tax adjusted trading profit 50,000
Property income 6,000
Dividends received from Track Ltd 5,400
Interest received 1,800
––––––
Taxable total profits 63,200
––––––
The amount of interest receivable for the year was £2,000. In addition the company realised a chargeable gain of £12,000.
What is the correct amount of taxable total profits for Trains Ltd for the year ended 31 December 2016?
A £58,000
B £70,000
C £75,400
D £69,800I have problem in figuring out the interest amount.
Looking forward for your reply.Thank you again for supplying the information from the questions but the answers to your queries are in my earlier reply – the first question is just testing the basic accounting principle of accruals – the receivable figure needs to be computed and is the amount received plus the closing accrual less the opening accrual (this is not a tax rule but is what you learned in basic accounting as the accruals system)
In the second question they have simply given you a choice between the interest received and the interest receivable and of course we use the receivable figure.
- You must be logged in to reply to this topic.