The question relates to Section C question-Poppy.
Poppy used a car for both private and business purposes.
TWDV was 8400
And disposal was 5400
Private use was 70%
After calculating capital allowances, there was a balancing allowance.
In an earlier post I've posted a question regarding special rate pool disposal. And after the disposal we still had to calculate 6% on the balance.
In this case, we're calculating balancing allowance. Is it because it's a private use car?
And also in short life assets we have balancing allowance and balancing charge.
Can you guide me through this? It's a bit confusing.
Thank you.
Ask the Tutor ACCA TX-UK
Private use car in partnership
When assets with their own column (private use and SLAs) are disposed of, a balancing charge or balancing allowance arises.
It's only the main pool and SRP that a balancing allowance can only arise in the period of cessation of the business (coursenotes, page 55)
I got it now.
Thank you. :)
No problem.
Topic lockedNew replies are closed.
