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F6 BPP mock paper 1..question number 6..HELP!!!

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F6 BPP mock paper 1..question number 6..HELP!!!

in capital allowance..all the assets in the Special pool where sold.

so wouldn't that give rise to a balancing allowance? instead of deducting WDA @ 8%? is the solution given in the kit right?

May 27th 2015 AN ACCA USER 220 Points

5 Replies

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Hi there. Could't find the original source of the question. Would you mind giving the full question? Thanks.
May 27th 2015 AN ACCA USER 220 Points
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what happens when all the items in the special pool is sold for a price lesser than the value of the special pool?
May 28th 2015 AN ACCA USER 220 Points
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Hi Liji. Thank you. As it would have been with a general pool, if ALL items are sold for less than the balance outstanding, this would give rise to capital balance (capital charge if the selling price, still lower than a purchase price, was more than the balance). If any other items still remain in the special pool, than you should continue writing down the balance at %8. I am pretty sure this is the way. Are you certain ALL items in the pool were sold? If so, have you tried contacting Kaplan in this regard? Hope this helps somewhat. Regards, Nataliia.

May 29th 2015 AN ACCA USER 220 Points
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Hi Natalia. No i haven't contacted BPP yet..i wanted to confirm  whether the answer given in the revision kit is right or wrong.


The question says:
ALL THE ITEMS INCLUDED IN THE SPECIAL POOL AT 1 APRIL 2014 WERE SOLD FOR 9300 POUNDS DURING THE YEAR ENDED 31ST MARCH.

Does this mean that only the items brought forward from the previous year were sold? and not the current year additions?

Thank You
May 29th 2015 AN ACCA USER 220 Points
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Hi Liji, sorry for not responding earlier. I have come across this just now: 'Although all of the items included in the special rate pool have been sold, there is no balancing allowance as the business has not ceased.' This, I believe, is exactly the situation that you have described. This is from the past exam paper June 2012 answer to question on Heavy Ltd and Soft Ltd, accessible from ACCA website. Hope this at last cleared the fog! Take care.
May 31st 2015 AN ACCA USER 220 Points
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