BPP revsions companion Question 3.1

pirate

Hi there

Am going back through the BPP book and doing all the revision questions
Question 1 asks for the calculation of the Capital Allowances

I have done it all correctly but in the answer in the capital allowance column there is an extra £1920 against the line for the 18000 CAR and I have no idea to which this relates

Addionally the total column for capital allowances adds up to £63860 in the answer.
If you are to add up all the items in the column ie 50,000 + 1920 + 1920 + 8700 + 2880 It comes to 65420.

My answer is £63500.

Anyone done this example or know if the answer is right or wrong

think I have lost the plot

jem88

Your correct, there is an error in the book. I emailed them and they sent me a corrected version:


Amended solution Chapter 3 Capital Allowances Question 1

AIA/FYA Main pool Mercedes car (80%) Allowances
Y/e 5 April 2010 £ £ £ £
B/f 38,500
AIA/FYA @ 40% additions
14.7.09 Furniture 23,800
2.4.10 Machinery 31,000
54,800
AIA (50,000) 50,000
4,800
FYA @ 40% (1,920) 1,920
2,880
Non AIA additions
30.3.10 Car 18,000
31.3.10 Car 8,000
Disposals
29.3.10 Machinery (3,000)
43,500
WDA @ 20% (8,700) 8,700
WDA @ 20% (3,600) × 80% 2,880
Transfer balance to pool (2,880) 2,880
C/f 37,680 14,400
Allowances 63,500


Jemma

jem88

ps that didnt copy and paste well sorry!

pirate

Hi jem88

thanks so much for that at least not totally mad

yet!!

lol