Financial Accounting

TASK -2

REQUIRMENT:A

There are calculated Motion –Metal plcs corporation tax ability for the year ended 31 March 2011.

Details | £ | £ |

Trading profit | | 1882600 |

Loan stock interest payable(22500+3700-4200) | 22000 | |

Capital allowance (w-1) | | |

IBA (w-2) | 7320 | |

| | |

Interest income (w-3) | | 8700 |

Property business profit (w-4) | | 68400 |

Chargeable gain (w-5) | | 176426 |

| | |

Taxable total profit | | |

Corporation tax liability @26% | | |

| | |

| | |

WORKING=1

Details | Main pool £ | Standard pool £ | Allowance £ |

Writing down value | 87800 | | |

Additions quails fyingOf AIA of office building | 0 | | |

Ventilation system lift | 46000 | | |

AIA @100% | 78000 | | 78000 |

Machinery | | | |

Building | 7700 | | |

wall | 22900 | | |

| 112200 | | |

AIA | (22000) | | 22000 |

| | | |

Others addition :

Motor car (17300×2)=4600

WORKING=2

Eligible expense 732000

IBA@ 1% 7320

WORKING=3

Loan interest received (9800+3100)

£12900

Bank interest received £2600

Interest payable £(6800)

8700.

WORKING=4

Premium received £ 68000

Less :[(68000×2%)×(6-1)] £(6800)

61200

Rent received (78800-68000) 7200

68400

WORKING=5

Details |...