BTC - Loan to former employees

System
System Posts: 100,534 🤖 Admin 🤖
edited 10:25AM in AAT student discussion
Hi,

Bit confused - if there is a loan to a former employee written off, is this allowable or disallowable? Most of the books say disallowable, but I had a feeling my tutor said it was allowable, as you only have the employee as a result of trading, so the loan could be argued to be trade related.
Thanks!

Comments

  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:BTC - Loan to former employees

    Hiya,

    My book says that trade bad debts written off are allowable, but writing off a loan to an employee is not allowable as it is not a trade item.

    Hope this helps!

    How is your revising going? I am feeling a little ill about the whole thing now. Just did the Dec 05 paper and it didn't go as well as I had hoped!

    Anyone any tips on a paper I could do to help revise? x
  • System
    System Posts: 100,534 🤖 Admin 🤖
    Re:BTC - Loan to former employees

    Thanks! I am so stressed, did a mock on the weekend at college and got loads wrong so more panicked now than before. Finding DFS ok tho. Just wish it was all over with. If I revise, I can't concentrate, but then if I don't I feel like I should be doing more. Can't win!

    Just been working through my textbook, and doing past papers - most recent first.
    Good luck!!

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