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tax adjusted trading profit and adjusted trading profit.

Ppradugna4y ago
Are the terms tax adjusted trading profit and trading profit the same? 1. If we go back to chapter 4, We derived adjusted trading profit as follows: Net Profit per accounts Less: Disallowable income Add: Expenditure not allowable for tax =Adjusted Trading Profit than, Less: Capital allowance =Tax adjusted trading profit the above shown method of computation was used in Example 1 of chapter 4 and the question requirement specified to calculate tax adjusted trading profit. 2. But, If we look at chapter 6- Cash Basis for small business The example 7 asked to compute Adjusted trading profit using both accural as well as cash basis. (not tax adjusted trading profit) even though the requirement asked to calculate just adjusted trading profit( which as per chapter 4 do not include Capital allowance dedcution, only tax adjusted trading profit does.) we deducted the capital allowance to derive the adjusted trading profit while using accural basis. thus i am very confuesed over those terms' use. kindly help me clear my confusion sir.
TTTax Tutor4y ago#1
My apologies the requirement should have asked for tax adjusted trading profit to avoid confusion
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