BTX- one of those days CAPS

topcat
topcat Registered Posts: 452
in AAT Level 4 (Level 8 in Scotland)
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I do not understand why the first box is wrong i get 5 months taking me up to 5th April = $29,250/12*5 = 12,187.50? The answer is $14625 which is 6 months ? (have i gone mad)

The second one 11/12 has the period august 11 which falls into this tax year , although because it is shorter then 12 months you have to tax the whole first tax year of business so $29,250 + 2 months of the next period which is $9360 = 38610 (which is the answer) . But is my trail of though to get to the answer on the right lines?

Comments

  • Makkusu
    Makkusu Registered Posts: 94 Regular contributor ⭐
    Hi Topcat,

    You seem to have noticed the first period is 10 months long but not applied it to your formula! Therefore I got the below:

    2010/11 = £29250*5/10 = £14,625

    I believe you understanding is correct, and you'd have overlapping profits as a result.
  • topcat
    topcat Registered Posts: 452
    Makkusu wrote: »
    Hi Topcat,

    You seem to have noticed the first period is 10 months long but not applied it to your formula! Therefore I got the below:

    2010/11 = £29250*5/10 = £14,625

    I believe you understanding is correct, and you'd have overlapping profits as a result.

    Hi Makkusu

    thanks for your help i understand now , just takes someone to point out the obvious sometimes to me

    had one of them days where every answer is almost wrong

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