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Opal Ltd has prepared accounts for the 14-month period ended 31 May 2013, and its trading profit for this period is £434,000. This figure is before taking account of capital allowances.
The tax written down value of Opal Ltd’s capital allowances main pool at 1 April 2012 was £62,000. On
10 April 2013, Opal Ltd purchased machinery for £38,200.Calculate Opal Ltd’s taxable total profits for each of the accounting periods covered by the 14-month period
of account ended 31 May 2013.Sir all I want to know please is how they got their allowance.
I got for the first 12 months 1/4/2011 to 31/3/2112
62 000 x 18% = 11160. that is fine but the following part is just confusing.
I got
b/F (6200 – 11160) =50 840 for main pool50 840 x 18% x 2/12 =1525
AIA for 2 months is 250 000 x2/12=41 667, thas is the limit, but as the machinery was bought the 10th of april as it was 38200, I thought AIA is the whole amount, what make allowance fo 2 months
38200 + 1525. but acca correction is different.
June 2012 4cIf you are looking at the ACCA website then you should not be as their answers have not been updated for FA 2013. What you have said is correct that as the second accounting period is only 2 months long then both AIA and WDA will be time apportioned accordingly, so that the 38,200 expenditure will be fully available for AIA.
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