Tx notes fa22 Final
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- Bu səhifədəki naviqasiya:
- June 2023 to March 2024 exams Watch free ACCA TX lectures (b) Accruals basis
- Answer to Example 2
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Chapter 3
Answer to Example 1 (a) Cash basis: The cash basis has become the default setting for individuals and partnerships in assessing property income. If the rental income is received quarterly in advance then amounts would be received on 1 July and 1 October 2022 and 1 January and 1 April 2023 amounting to £6,000. If the rent was received quarterly in arrears then amounts would be received on 30 September and 31 December 2022 and on 31 March 2023 amounting to £4,500. The £300 allowable expenses paid in November 2022 will be the only allowable deduction in 2022/23 as the repairs expenditure, though incurred in 2022/23, was not paid until the 2023/24 tax year. If therefore the rental income is received quarterly in advance the property income assessment will be £5,700 (6,000 - 300) whereas if the rental income is received quarterly in arrears the assessment will be £4,200 (4,500 - 300) £ Property income 10,000 Less: Personal Allowance (12,570) nil Tax liability nil 223 Only on OpenTuition you can find: Free ACCA notes • Free ACCA lectures • Free ACCA tests • Free ACCA tutor support • The largest ACCA community June 2023 to March 2024 exams Watch free ACCA TX lectures (b) Accruals basis: The rent assessable in each case is the rental income accrued for the period 1 July 2022 to 5 April 2023 irrespective of when the amounts were due to be received or were actually received. Expenses incurred in the same period are deductible irrespective of the date when paid. Answer to Example 2 The garage is an improvement, not a repair, and is therefore not deductible. The redecoration cost was paid in 2023/24. An equivalent replacement cooker would have cost £300 and proceeds of £50 were received on the sale of the old cooker. £ £ Rent due 9/12 × 6,000 4,500 Expenses: Redecoration 300 Repairs 500 800 Property Income for 2022/23 5,300 £ £ Rent received £9,600 × 11/12 months 8,800 Expenses: Replacement furniture relief (300 - 50) 250 Insurance paid 480 Drain clearance 380 (1,110) Property Income for 2022/23 7,690 224 Only on OpenTuition you can find: Free ACCA notes • Free ACCA lectures • Free ACCA tests • Free ACCA tutor support • The largest ACCA community Yüklə 15,86 Kb. Dostları ilə paylaş:
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