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Income tax is charged on an individuals NON SAVINGS, SAVINGS AND DIVIDEND INCOMES. The taxable income is found by using the tax income bands.
good afternoon,
The tax band for standard personal income tax rates are:
1 – 33500 = 20%
33501 – 150000= 40%
150001 + = 45%.
The 45% has a maximum amount that turns in turnover tax, and the turn over tax has a maximum that turns in company income tax rates. these tax rates are inter connected. am I right?
and the amounts appearing in cash book and not in bank statement are called lodgements?
1) I see, so when they say p acquired 100% shares in S, it means it bought all the ordinary share’s in s plus the retained earnings at date of acquisition? so its no wonder we deduct the retained earnings in subsidiary S on consolidation because it has already been included in parent company on acquisition date?
2)the fair value of non current asset more than the carry value has nothing to do with the 100% shares bought by parent company on acquisition, its no wonder we add it to non current assets during consolidation?
I have no problem with goodwill and the rest, I just don’t know why you add the fair value of non current asset on acquisition and deduct the retained earnings on acquisition
I watched the lectures. Am a little slow in understanding this part.
what you saying is that,
irrecoverable debt $1000
recovered debt ( $800)
31 Dec allowance ( $1000)
TOTAL $1200Then to reduce the allowance we debit $1200 and credit $3000= $1800 credit?
another question Sir
Open tuition chapter 16
Q1) irrecoverable debts written off are a “Decrease in Liabilities”= its a debit and credit Sales account?
Q3) A contra entry of $980 was recorded in the payables ledger control account, but not in the payables ledger. Is this a credit entry in the payables ledger or a debit entry? And why? The answer shows it was deducted from the list of receivables balances and not addedSir is there a problem with this question?
Your organisation sold goods to PQ Co for $800 less trade discount of 20% and cash discount of 5% for
payment within 14 days. The invoice was settled by cheque five days later. Which one of the following
gives the entries required to record BOTH of these transactions?answer is
A PQ Co 640
Sales 640
Bank 608
Discount allowed 32
PQ Co 640working
Sales price 800
Less: 20% trade discount 120
Sale PQ Co Sales 640
Cash discount 5% Discount allowed 32
Cash payment Bank 608
PQ Co 640Sir, 800X 20% is $160. the answer says its $120? how?
am I correct sir?
is B wrong because they deducted drawings,
is D wrong because drawing were deducted,
is A wrong because Drawing were deducted?is this ok to analyse the situation like this? I watched the lecture sir, where you talked about “what the company owns and what it owed? chapter 2 dual entry?
A sole trader took some goods costing $1920 from inventory for his own use. the normal selling price for the goods is $3840. which of the following journal entries would correctly record this?
Answer is Debit drawings $1920 credit purchases $1920.My question is, these goods where taken from inventory, when did they move to the purchases account? please explain sir.
balance of payment: is made of a current account which consists of capital related transaction authorised by the government for countries under the European union,to pay for citizens and transactions working in other countries.
Sir, is the above statement correct? I said, EUROPEAN UNION COUNTRIES
What is your definition of balance of payment?
Sir,
help me understand, in the statement of financial position, what items are found under EQUITY, are there fixed items ( I noticed Share capital is found there- ordinary shares and preference shares, Loan stocks- income for assets as security, Reserves- profits for dividend payments, surplus from assets… what is EQUITY?Sir
and what is the main difference between a charity organisation and an NGOsays jared fowards to rest of network after receiving information from team members…the wheel does not demostrate all that! the wheel shows all members sending information to jared,.it does not show jared sending information to the rest of the network. i choose B as my answer.
thank you.
Absorption costing.
i failed to post a new thread, so am posting under this very one.Direct materials 6.00
Direct labour 7.50
Variable overhead 2.50
Fixed overhead absorption rate 5.00
21.00
Profit 9.00
Selling price 30.00
Budgeted production for the month was 5,000 units although the company managed to produce 5,800 units,
selling 5,200 of them and incurring fixed overhead costs of $27,400.
9.4 What is the marginal costing profit for the month?Mr john, I have watched your free lectures, but how come 5200 units were used to calculate fixed cost? 5200X$5= $26,000. is the $26000 selling fixed cost? shouldn’t it be 5800units X$5=$29000
in regards to the first question..what would happen if both figures were favourable. i just want to be sure with the transactions.
2: Last month a manufacturing company’s profit was $2,000, calculated using absorption costing
principles. If marginal costing principles has been used, a loss of $3,000 would have occurred. The
company’s fixed production cost is $2 per unit. Sales last month were 10,000 units.
What was last month’s production (in units)?
A 7,500
B 9,500
C 10,500
D 12,500my question is, if $3000 was a loss in marginal, does it mean it will be a profit in absorption costing? how come it has been added?
sir. concerning the queation above… that formulae is new to me of 6000*1/0.095. i do not understand how 95/100= 0.095 and not 0.95..
and can you kindly fill in the figures of the above question in the formulae i understand best of 1-(1+r)^-n/r so i can get the final answer of 69158.thank you.
1:answer= Required for sales 24,000
Required to increase inventory (2,000 × 0.25) 500
24,500. I thought if 24, 000 units are sells then they consist of opening inventory of 2000 units2:answer =Payments in June will be in respect of May purchases.
May
Production requirements (8,400 units × 3 kg) 25,200 kg
Closing inventory 4,100 kg
29,300 kg
Less opening inventory 4,200 kg
Purchase budget 25,100 kg
× $2 per kg = payment for purchases in June $50,200
Option A is the figure for the quantity of material to be paid for, not its value. Option B is the
value of June purchases, which will be paid for in July. If you selected option D your adjustments
for opening and closing material inventories were the wrong way round. I noticed that the 3900kg was not considered and yet its mentioned as the closing inventory. unless I have missed it out somewhere.1:Thank you sir, I actually thought interest in this question is a current liability to calculate current ratio. what makes it so unique in this question that I should not include it as an asset or liability to calculating current ratio. 2: Sir, Investment Appraisal, discount factor is 12% number of years is 2 capital outlay is $24,000 profits is $5000 is (1+0.12)^-2=0.797X the profit $5000 means we are finding the principle of the $5000 profit. then why deduct the capital invested of $24,000. this doesn’t make sense to me. why deduct capital invested of $24,000 from principle invested of $$3985 to find NPV?