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sir, if owner withdraws 10000 cost price good and it’s market value is 12000. how should we adjust it ? 10,000 deducted or 12000 deducted from profit before tax. ?
OT notes chapter 4 section 2.2 note (p) – we will never be deducting 10,000 or 12,000 we will be adding back either 12,000 or 2,000!
Read the notes and watch the lectures!oops. sorry..it was blunder so, for owner in companies, we add back 12000 or 2000? is it same like individual’s adjustment? if already adjusted cost price we add back 2000 only otherwise 12000?
I see another “oops sorry” here!
In corporation tax there are NO private use adjustments – see OT notes chapter 15 section 5.2.
For the unincorporated trader if the accounts have already accounted for the cost of goods consumed then it is indeed just the profit margin that must be added back.
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