btc exam 4 bpp book 2.4

meibaker
meibaker Registered Posts: 481 Dedicated contributor 🦉
in AAT Level 4 (Level 8 in Scotland)
in bpp book exam 4 2.4, it asks to calculate PCTCT, but the answer didn't deduct gift aid , why??

Comments

  • Terdoo
    Terdoo Registered Posts: 144 Dedicated contributor 🦉
    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 help
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    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!
  • Terdoo
    Terdoo Registered Posts: 144 Dedicated contributor 🦉
    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 1/01/10
  • noodles
    noodles Registered Posts: 308 Dedicated contributor 🦉
    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 also
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    Terdoo wrote: »
    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!
  • meibaker
    meibaker Registered Posts: 481 Dedicated contributor 🦉
    nscuffell wrote: »
    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 also

    that's my answer too, but the suggested answer didn;t deduct gift aid.
    maybe its a error on the book
  • Beth
    Beth Registered Posts: 40 Regular contributor ⭐
    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...
  • jem88
    jem88 Registered Posts: 13 New contributor 🐸
    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!!
    Jemma
  • Beth
    Beth Registered Posts: 40 Regular contributor ⭐
    Haha! I don't understand why they can't have people test the books before they issue them... grrr. Waste our time!
  • koda
    koda Registered Posts: 52 Regular contributor ⭐
    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 49,476
  • jojo1966
    jojo1966 Registered Posts: 21 New contributor 🐸
    Beth wrote: »
    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 !!!

    grrrrrrrrr

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