Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › molten metal plc
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- February 24, 2018 at 8:53 am #438667
hello sir
i have a doubt in this q.During May 2016 Molten?Metal plc spent a further £97,400 on repairs. The office building was not usable until these repairs were carried out, and this fact was represented by a reduced purchase price
ok sir so this is my question.
97400 is a disallowable expenditure so it is added .
to the profit..to find out tatp
now this 97400 is a capital expenditure.. so should we not give it capital allowance
in the solution. 97400 is not included in the capital allowance computation.February 25, 2018 at 10:50 am #438851We do not get capital allowances just because we incur capital expenditure – we only get CA’s if the expenditure is on qualifying plant and machinery, but a building, other than integral features, does NOT qualify as P&M!
February 25, 2018 at 11:14 am #438865ok so suppose if in this question..
instead of buliding it was a qualifying machine/ plant..
then the 97400 would be disallowed and it would get capital allowance ?March 1, 2018 at 3:30 am #439459Yes
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