Raymond started trading on 1 October 2020. He chose 31 March as his accounting date and his
Question:
Raymond started trading on 1 October 2020. He chose 31 March as his accounting date and his first accounts were for the period from 1 October 2020 to 31 March 2021. His purchases and sales of plant and machinery during the first two accounting periods were as follows:
There was 25% private use (by Raymond) of the motor car purchased in November 2020 but there was no private use of any of the other assets.
Required:
Prepare a capital allowances computation for the period to 31 March 2021 and for the year to 31 March 2022.
Transcribed Image Text:
1 October 2020 1 October 2020 12 November 2020 18 December 2020 4 February 2021 12 April 2021 12 April 2021 25 November 2021 3 February 2022 Bought machinery Bought motor van (emissions 212g/km) Bought motor car (emissions 153g/km) Bought office equipment Bought motor car (emissions 102g/km) Sold car bought in February 2021 Bought motor car (emissions 37g/km) Sold machinery (cost 11,500 in October 2020) Bought machinery 130,000 16,200 18,800 4,800 9,200 9,600 15,500 8,300 60,000
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To prepare a capital allowances computation for Raymonds business we will need to follow the tax rules applicable to the type and use of assets he has bought and sold The rules will differ based on th...View the full answer
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