During the year ended 31 March 2011 Molten-Metal plc paid loan stock interest of £22,500. Loan stock interest of £3,700 was accrued at 31 March 2011, with the corresponding accrual at 1 April 2010 being £4,200. The loan is used for trading purposes .
The answer for this is 22500 + 3700 - 4200 = 22000 .
Could you please explain why 4200 is being deducted here.. thanks
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Interest payable - corporation tax liability
I think it's because the loan is for trading process, then the interest paid accrued at1April 2010 should be deducted from trading profit instead of interest income...
About receivable.
Loan interest receivable £32800. Accrued @1April 2014 £10600, accrued @31March 2015 £11300. This two figures are ignored. Why's?
As per your question the basis of the deduction is interest PAYABLE and this is simply the calculation of the amount payable in respect of the accounting period - you should have learned the accruals concept in basic accounting!!
Paid + closing accrual - opening accrual (this would have been included last year but is a part of what was paid this year so must now be removed)
Sir, While calculating property business profit for corporation, if a property is let out furnished, then is wear and tear allowance deducted from property income?
Yes companies will also get the wear and tear allowance but remember that it is only on residential property
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