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Business use of private telephone was calculated as 450 X 2\5= 180. I calculated it as 2\5 / 3/5 x 450 = 300 and I think I am correct. please help.
Hi Keven I think you have just interpreted the information in a different way which I can understand but was not meant – the question states that the total cost of calls on his private telephone was 450 of which 2/5 were actually business calls, therefore 2/5 of 450 is the deduction allowed against the trading profit as shown, rather than as I see you are taking the 450 as being just the cost of private calls on his private telephone which must therefore be 3/5 of the total and hence your calculation. I will change the wording in the question for next year to try and avoid misunderstanding in the future – thanks for feedback and at least it was not a technical point you were querying!
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