Question

Question 6 and 7 please

b) The debt must have been written off in the accounting records A copy of the sales invoice must be retained The claim for VAT bad debt relief must be made within two years and six months from the date that payment was due a) continued Page 4 of 11 BUSS2151 WE01 6. Dolphins Ltd has a corporation tax liability of £50 million and has an accounting period of five months to 31 May 2014. When will instalments of corporation tax be due? a) b) c) d) 14 June 2014 and 14 October 2014 14 July 2014 and 14 September 2014 The instalment system will not apply 14 August 2014 and 14 November 2014 Cowboys Ltd have been registered for VAT for a number of years and have recently purchased various items for use in trade. On which of the following items could Cowboys Ltd not recover VAT input tax? a) b) c) d) Van accessories purchased one year ago Fixed partitions in the office A motorcycle for business deliveries Entertaining costs for UK business customers

Answer 1

Question no.6

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d) 14 August 2014 and 14 November 2014 .

As the accounting period is 5 months ending to 31 May 2014, It means the installment gets due on 2 months 13 days later.

Hence it will be on 14 August 2014.

Question no.7

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d) Entertaining costs for UK business customers .

As the Entertaining costs doesn't include for VAT input tax Therefore VAT input tax cannot be taken.

Rest of all the options are some fixed assets used in business but option d) was odd one out