Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Retro LTD. Trading losses.
- This topic has 4 replies, 2 voices, and was last updated 8 months ago by yuceeluv.
- AuthorPosts
- March 1, 2024 at 2:09 pm #701568
Hi,
Please i have quite an issue with a section C question. I am aware that impairment losses are allowable deductions only after they have been overdue for 6 months. Please see below, the note 2 contained in the question. And this was an allowable deduction for Retro Ltd… I believe it should have been disallowed as it is just 5 months overdue(Retro had a year end of 31st March 2023). I am confused as to why this was allowed. Please help.
Note 2 – Impairment loss
On 31 March 2023, Retro Ltd wrote off an impairment loss of £1,600 relating to a trade debt. This was in respect of an invoice which had been due for payment on 10 November 2022.
March 2, 2024 at 4:11 pm #701704Which chapter/page/example is this question please?
March 2, 2024 at 6:29 pm #701724Hi,
ACCA study HUB. (TX UK March 2024). The “practice questions” section. Section C questions. Retro Ltd. Under Corporation tax.
March 3, 2024 at 10:08 am #701829I am afraid I do not have access to that information.
I wonder if you are confusing the writing off of a debt with the VAT rules on claiming back the VAT?
March 3, 2024 at 4:23 pm #701864Oh mine! lol. Yes, indeed I am. That rule applies to input VAT. And that was not the case in this question. This was just a company writing off a bad debt within the accounting period.
Thank you. I completely forgot that. - AuthorPosts
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