btc exam 4 bpp book 2.4
meibaker
Registered Posts: 481 Dedicated contributor 🦉
in bpp book exam 4 2.4, it asks to calculate PCTCT, but the answer didn't deduct gift aid , why??
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Comments
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Re BTC
what year was the gift aid in, was it suppose to be on the following year? then add it to the following year.
Hope this help0 -
a summary of the account show for year ended 31 july 2009
gross profit.....................................690,450
dep..........................45,060
expenses.................272,100
director wages..........145.030
other salary..............190.990
net profit.......................................37,270
expense include
legal fee in tax appeal.............5400
director speeding fine ...........200
gift aid payment made.......1500
capital allowance......52,710
chargeable gain ......14,256
calculate the PCTCT for year ended 31 july 2009?
answers:
adjusted profit..............36,720
chargeable gain ............14,256
PCTCT.........................50976
IT DIDN'T DEDUCT GIFT AID! NOT SURE WHY!0 -
Gift aid
I Prctice something similar to that yesterday, and gift aid was not involve in the current year which was 31/07/09 CAP1 and gift aid was then charged to CAP 2 which was 1/01/100 -
my notes say that a company can not use gift aid pmt as an allowable deduction as it would be a duplication of tax relief. Therefore I make the pctct 49476 also0
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I Prctice something similar to that yesterday, and gift aid was not involve in the current year which was 31/07/09 CAP1 and gift aid was then charged to CAP 2 which was 1/01/10
it didn't even mention when the gift aid was made, and there wasn't even another CAP in the question which is very strange!0 -
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I reckon it's a BIG error in the book as it's been added back on in the calculating the adjusted trading profit...
I'm pretty sure there are a few in these books...0 -
There are many errors in the book! Everytime I find one I email them and within a couple of days they send an amended answer!!
Jemma0 -
Haha! I don't understand why they can't have people test the books before they issue them... grrr. Waste our time!0
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I think the answer may be wrong also, it is right that they have added back gift aid in the first place when adjusting the profits but they should have taken it off again afterwards to get to the PCTCT. I made the answer:
Net profit 37,270
Add depr. 45,060
Add legal 5,400
Add director speed 200
Add gift aid 1,500
Deduct cap all. (52,710)
Adjusted prof = 36,720
Then:
Adjusted profits 36,720
Add gain 14,256
Subtotal 50,976
Less gift aid (1,500)
PCTCT 49,4760 -
I reckon it's a BIG error in the book as it's been added back on in the calculating the adjusted trading profit...
I'm pretty sure there are a few in these books...
not just me then!! i keep coming across loads of things that are wrong - dates and stuff which keeps confusing me ! you pay a fortune for these books - least they could do is get the info right in them !!!
grrrrrrrrr0
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