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Hi Sir,
i had a doubt about Capitla Allowances claimed in the last year where a sales is made.In the last Year where the the asset is sold the value that we use to calculate the balancing Allowance or charge is after charge for the year or there is no charge for the year,
For E.g
An asset is being depreciated at Reducing 25%..THe asset is sold at the end of year 5 at 5ooo$.THe calue of the asset at the end of Year 4 is let say say 3000.Now to find the Balancing all/Charge do we charge 25% again and then compare with selling price or we will use the YEAR 4 value which is 3000$.
Best Regards
In the year of sale there is no writing down allowance (i.e. no 25%) – just the balancing allowance or charge which is the difference between the tax written down value and the sale proceeds.
Hi sir thanks for the reply
Sir in the BPP text book thay have calculated the CA for the year of disposal also is that method also correct.
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