Exam style

(a) Y/ended 31/3/2023

AIA/FYA Main pool Special pool

4/1/2022 WDV B/f 48,200 14,100

Bought plant 682,000
Less AIA - 552,000 130,000
Bought car > 50g 18,000
Purchase new equipment 75,000
FYA 130% - 97,500 -
Integral feature building 448,000
Less AIA - 448,000
Sold plant - 2,100
Bought car < 50g 22,000
198,100 32,100
WDA18% - 35,658
WDA6% - 1,926
3/31/2023 WDV C/f 162,442 30,174
Total CA claimed

Max AIA 1,000,000

Integral feature - 448,000
552,000

(b) Statement of adjusted profits

Net profit as per a/c 1,718,350
ADD: Expenses not allowed
Directors fees -
Amoration of lease 6,000
Entertainment expenses 12,300
Depreciation of tangible assets 164,000
Gift Aid Donation 8,400
Gift to customer 7,000 No business name
Gift to suppleir 3,200 food item
patent royalties - trade expenses
Remiander allowable expenses -
rental expenses 6,000
Less: Non trading income
Rental income - 56,000
Dividend - 62,500
Profit on sale buidling - 32,400
Loan interest - 25,000
Profit on sale of shares - 11,200
Less: Expenses allowed not Income st
CA(a) - 1,135,084
Premium Assessed (Wk 1) - 3,100
599,966

(c )
Adjusted profit 599,966
Loan interest 25,000
Rental income wk2 64,000
Ch gain 138,549
Other income 135,000
Total profit 962,515
less Gift Aid Donation - 8,400
PCTCT 954,115
dividend 62,500
Augmented profit 1,016,615
Ctax 19% 181,282

Workings
1. Amortisation lease
Premium 120,000
2%(20-1)120000 - 45,600
total premium assessed 74,400
per annum 3,720
1/6 -31/3 - 10m 3,100

2. Rental income 70,000

less expenses - 6,000
rent received 64,000

3. Building sale
Aug-15
DP 120,000
less acq cost - 61,400
Renovation - 16,000
unindexed gain 42,600
Less IA Acq cost (259.8-224.1)/224.- 9,781
Less IA renovation (259.8-234.7)/2 - 1,711
Gain before relief 31,108
Amt not reinvested 120-90 - 30,000
Roll over relief 1,108

Replaced cost 90,000

less roll over relief - 1,108
Adj cost 88,892

May-22
DP 210,000
less inc cost disposal - 250
Net DP 209,750
less Adj cost - 88,892
unindex gain 120,858
IA 278.1-259.8)/259.8 - 6,261
114,596
4. No same day or 9 days prior acq made
S104 holding no of sharecost indexed cost
 Aug-86 bought 2,000 8,000 8,000
Index to Mar 1989
(112.3-97.82)/97.82*8000 1,184
Mar-89 bought 1,100 10,000 10,000
3,100 18,000 19,184
Index May 2006
(197.7 -112.3)/112.3*19184 14,589
3,100 18,000 33,773
May-06 Bonus issue 1 for 2 1,550 - -
Index to Sept 2022
(278.1-197.7)/197.7 13,735
4,650 18,000 47,508
Sep-22 disposal - 1,950 - 7,548 - 19,923
S 104 holding C/f 2,700 10,452 27,585

DP 1950*22.50 43,875
Less Acq cost - 7,548
unindexed gain 36,327
IA (19923-7548) - 12,374
Ch Gain shares 23,952
CH gain building 114,596
138,549
Total

552,000

97,500

448,000

35,658
1,926

1,135,084
ndexed cost