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Specific Allowances

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA FA – FIA FFA › Specific Allowances

  • This topic has 1 reply, 2 voices, and was last updated 5 years ago by AvatarJohn Moffat.
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  • August 4, 2020 at 7:08 am #579132
    AvatarSourav9271
    Participant
    • Topics: 164
    • Replies: 117
    • ☆☆☆

    Sir,
    Whilst calculating the general Expense.
    Should the specific Allowance and Irrecoverable debts both be subtracted initially then multiplied by %rate

    August 4, 2020 at 9:57 am #579170
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54846
    • ☆☆☆☆☆

    Any specific allowance is subtracted before calculating the general allowance.

    As far as irrecoverable debts are concerned then yes they are deducted, but check the wording of the question carefully because if the question says that they were dealt with during the year then they will already have been deducted and so we don’t deduct them again 🙂

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