BPP revsions companion Question 3.1

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pirate
pirate Registered Posts: 469 Dedicated contributor 🦉
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

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  • jem88
    jem88 Registered Posts: 13 New contributor 🐸
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    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
    jem88 Registered Posts: 13 New contributor 🐸
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    ps that didnt copy and paste well sorry!
  • pirate
    pirate Registered Posts: 469 Dedicated contributor 🦉
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    Hi jem88

    thanks so much for that at least not totally mad

    yet!!

    lol
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