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Hello sir,
I have a problem in the concept of balancing allowance. What i know is that, we give balancing allowance when an asset is disposed off or the business ceases to trade.
I was doing a question No. 255, where it states that,
All the items in Special rate pool has been disposed off and short life asset 2 also sold.In the solution, there was balancing allowance on the remaining amount of short life asset 2 after disposal,
but there was no balancing allowance on Special rate pool instead they charge WDA @6%.Is it a mistake or am I missing the law?
Enlighten me.
Thankyou in advance
Harigovind PandeyBalance allowance is only arise special rate pool and main/general pool on ceased of trading.
so, if there is any short life asset and it gets sold, then we will provide balancing allowance?
You need to work through the lectures and notes – specifically the section on non pool assets – before reverting to this forum
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