[sayedaamal]

I’m so grateful to you. You’ve explained it so clearly. All my doubts have been cleared.

Now I do understand how 25% is calculated. It’s the difference between 20% and 45%.
And
Also that BRB can be extended when we calculate CGT.

Also it was helpful knowing about CGT saving in detail that we save 20% at source plus an additional 6% being the difference between 18% and 24% and how we arrive at the calculation.

Thank you so much.

[sayedaamal]

Thank you so much for helping and also very grateful for all the tax lectures and notes. We can understand that it was a huge job in getting the videos and notes uploaded.
So thank you once again for it.

[sayedaamal]

Thank you for replying.

It is pretty much clear now.
Under Cash basis, if plant and machinery are sold then the receipt would be included as a trading receipt and will not be included in the Capital Allowances. Under Capital Allowances, only cars will be included .

Under accruals basis, both cars and plant and machinery would be included.

[sayedaamal]

Thank you so much for taking the time out to explain.
You have explained it so clearly.
I was getting confused about this even when doing this from Kaplan text. But then when I was watching your lectures, it was pretty clear but just to make sure that no doubt is left, I thought it’ll better if I posted my question here. Now I can move forward to the next topic.

Once again, thank you.

[sayedaamal]

Thank you so much.
It did clear my doubt.

[sayedaamal]

I have been doing the question again and maybe I do understand what the question meant.

Am I right to think that the nominal value for next 2 years after the initial 5 years will be ‘x’ amount but lower than the PV 87,500.

And when added together will cost a bit more than 87,500, ie 87,500+x, which is not economical because it is costing us more.

So therefore 87,500 over 6 years is more economical?

[sayedaamal]

Thank you for taking your time to help me.

Sir I still have 2 questions.

1. Do we have to discount back the nominal rentals to PV as well?

2. How is it economical to take 6 years as the useful life?

Thank you Sir. And also sorry for the trouble.

[sayedaamal]

No, thanks to you Sir for helping all the students achieve their goals. And also thank you for boosting my confidence.

I’ll do my best.

Best regards,

Sayeda

[sayedaamal]

Thank you so so much.
Your explanation made it so much clear.

This part was very confusing for me. If a concept is not clear, I am afraid that I’ll make mistakes. So it was important for me to understand this concept, also for future application.

I searched for this but didn’t know that the classification is done just like the classification done for shares. It makes so much sense now.

Thank you Sir.

[sayedaamal]

Thank you so much for your reply.

My confusion has been cleared now.

Thank you once again.

[sayedaamal]

Thank you so much Sir. I got it now. 🙂

[sayedaamal]

Thank you for replying Sir.

Sir I’m still confused because I thought that the word ‘above’ was actually pointing out to price which is ‘above’ the equilibrium price which causes the demand to decline.

[sayedaamal]

Thank you so much Sir. It’s such a relief because I was a bit worried.

Thank you once again Sir.

[sayedaamal]

Thank you Sir 🙂

[sayedaamal]

I was thinking the same that maybe there’ll slight changes in the internal service due to centralisation. But I guess I was focussed much on the “basic service’ which I thought shouldn’t change much.

But then after your reply I referred to my textbook again to try to understand if there were supposed to be any changes and what I can think of is maybe the changes they’re talking about is of the advantages mainly ie:

Cost-saving
Reduced duplication of roles
More improvement in service provision

I don’t know if I’m right about this but I’m thinking that these might probably be the changes they’re talking about.

[sayedaamal]

Thank you so much for the reply. Please don’t be sorry Sir. It was a mistake in the Kaplan textbook.

[sayedaamal]

Hello Sir,

The correct answer to this question is B. But I’m having trouble understanding as to why the answer is B and not A since option A has stated that the organisation does not wish to sacrifice it’s security. I am just thinking security was more important to this organisation.

Thank you 🙂

[sayedaamal]

I’ll try to remember that. Thank you so much Sir. 🙂
Have a great day.

[sayedaamal]

Thank you so much for replying.

Oh so that means inflation happens when there’s price increase in “all” goods. That one I didn’t know in detail. Thank you for explaining. But that part still keeps confusing me that domestic deflation reduces aggregate demand. Probably I might have missed something what you explained.

[sayedaamal]

What I can understand from this is:

When prices rise, demand starts to decrease gradually and this also seems to happen with interest rates as well since not everybody can afford to borrow at higher interest rates. So what the government does is reduce inflation and bring it to a level so that demand starts to rise again and they can try to achieve a balance once again.

But I’m still confused about the part where it says- domestic deflation reduces aggregate demand.

Also I am having a little trouble in relating the current account deficit with deflation.

Also thank you for replying 🙂

[sayedaamal]

That’s exactly what I was thinking. Thank you so much Sir.

It’s pretty much like balancing each account like those we did in FA that’s why I guess we just write cash out for increase in inventory but there’s actually this corresponding payables that increases which is not a cash out. I can kind of recall that now. 🙂

[sayedaamal]

Oh! So it’s the changes in the short term. Thank you so much.

[sayedaamal]

I was assuming that seasonal variation occurs frequently (maybe) in real life situations. Why are seasonal variations considered short-term?

Thank you 🙂

[sayedaamal]

Thank you so much for replying. Actually I’ve got an exam in 2 days time and you’ve been so kind. Thank you Sir once again and also need your prayers.

About the increase in inventory, I thought increase in inventory would increase payables in turn or maybe it could be that – those 2000 have been included in the payables of 3000 or so (I’m just assuming, I might be awfully wrong.)

[sayedaamal]

Yes Sir. All thanks to you. It’s all clear now and I’m doing well with mock questions and specimen exam. I’ve also watched your free lectures on specimen exam questions. It’s very clear. Thank you so much Sir. 🙂

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