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Trading Profit Assessment BPP kit qs 101

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Trading Profit Assessment BPP kit qs 101

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Tax Tutor.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • January 22, 2021 at 6:17 am #607500
    jijon
    Participant
    • Topics: 18
    • Replies: 15
    • ☆

    Stefan started trading on 1 January 2019. His profits for the first six months of trading to 30 June 2019 were
    £3,000 each month. Stefan estimates that his profits will be £4,000 each month for the next six months of trading
    to 31 December 2019 and then £5,000 each month thereafter for the foreseeable future.

    Compute Stefan’s trading income for the tax years 2018/19, 2019/20 and
    2020/21 if he chooses 30 April as his accounting date.

    Sir wouldnt it be 9000 for 18/19 ,42000 for 19/20(first 12 months-3000*6+4000*6) and 60000(5000*12)?
    but the answer is 9000,45333,50000.??

    January 23, 2021 at 5:40 pm #607691
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    You are making the mistake of just looking at the actual profits made in those actual months – you must calculate what profits were actually made in the opening ACCOUNTING PERIODS and then apply the bases of assessment to those figures as shown in the notes and lectures

  • Author
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