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practice question 11

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › practice question 11

  • This topic has 1 reply, 2 voices, and was last updated 6 years ago by Tax Tutor.
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  • February 13, 2019 at 1:38 pm #505011
    rishabbohra98
    Participant
    • Topics: 112
    • Replies: 88
    • ☆☆☆

    Sir in the notes it is stated that If expenditure qualifying for AIA exceeds the AIA limit, the AIA should be allocated firstly to special rate expenditure before main
    pool expenditure. Then why in pratice question 11 the excess AIA of 6,500 is allocated to main pool and not special rate pool?

    February 13, 2019 at 3:45 pm #505024
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    There is NO special rate pool expenditure incurred in that period! The expenditure in the period is all main pool. I think you have misunderstood the meaning of the statement – work through Illustration 3 in chapter 5 (and watch lecture if in doubt) in the notes which demonstrates what the statement means.

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