Question
Jimmy took out a loan on 1 September2017 to help with the purchase of some new plant and equipment. He borrowed $27,300 of which $17,300went
Jimmy took out a loan on 1 September2017 to help with the purchase of some new plant and equipment.
He borrowed $27,300 of which $17,300went towards the purchase of new plant and the rest he used as spending money on his holiday.
The repayments were due on the 1st day of each month starting as from 1 October2017 of $1500 consisting of $1300 capital and $200interest 13,500
The costs associated with obtaining the loan were $400 and the loan was for 3years
On 30 June 2018 Jimmy prepaid the loan repayments for the next 12 months 1 July 2018 to 30 June2019 18,000
Payment to his accountant for completing his income tax returns 4,300
Advice from his legal advisor on the benefits of changing his structure from its current mode of a sole trader to a company 1,500
Question:
From the above information, which account will go under Less allowable deductions?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
The less allowable deductions will be Payment to his accountant for c...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started