Home For AAT student members AQ 2016 Professional Diploma in Accounting Business Tax
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BTAX AQ2016 AAT Mock Assessment 2 - Q1.3 HELP

ZulaikahZulaikah Registered, AAT Student Posts: 2
If anyone is able to provide an explanation or brief walk through of the capital allowances computation question of the second AAT mock, I would truly appreciate it!!!
(The question is attached)

Thank you :)

Comments

  • Pian32Pian32 Registered Posts: 205
    So you want to start by putting in your B/fw information:
    From this you have 3 pools:
    General
    Production car
    Harry's car

    The additions you need to apply the relevant rules:
    Plant can be done by AIA
    Harry's new car needs to be given a new pool but I think it can be fully written off through FYA (50%), though appropiate adjustments need to be made for the private use. (This might be wrong I'd have to double check)

    Disposals you can just remove from the appropiate pool:
    Plant - general
    Production managers car - single asset, calculate the balancing charge and apply appropiate %s
    Harry's old car - single asset as Production managers car.

    Subtotal what you have and calculate the WDA for the general pool.

    I am a little rusty on how private use asset pools interact with the FYA and balancing charges so make sure to double check those.

    I hope this helps.
    AAT Level 4, MAAT
    ACCA in progress
    F4- Passed Aug 2020
    F6- Sitting September 2020
    Zulaikah
  • ZulaikahZulaikah Registered, AAT Student Posts: 2
    Thank you for this! It's definitely helped clear up things I had been doubtful about :)
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