Class Notes - Income from Business
Income
from Brinen
I
Asset
Depreciable Intangible
- ↓
Depreciation Exp AmortizationExp
Balance Method ① StraightLine Method.
① Reducing
[Link]
⑦ Dep= x
Dept. ⑦ Amortization - Lost
③ Full year
Useful life
dep in the
year
ev
of purchase dep2 No in ③ Proportionate amortizations (No of
team of disposal
the day bail in
year of acquisition
the
5. No
amortization in
year
the
of disposal
Tangible/Intangible Asset Noteligible
=>
for the
claim
of
I depreciation amortization deduction
Acquired E disposed in SameTax Year Gain/(loss)
->
-> Capital Gain
Criteria Asset
for claim
of Depreciable
Art
① There mustbe a
depreciable
② [Link] use for
deviving IFB"
⑥ Duveship of departis maintained atthe
end tax
of year.
INITIAL ALLOWANCE (Section 23)
Eligible Deparciable Asset
plying for Hire Commentor
-
vehide
I
Panergan Transport Good Tranport
Vehicle Vehicle
I
plying for Not
plying Plyin for Hire
Hire
for live
EDA
Comenial We Individual Self Use
->
Wher/carsem
1
C30/Director/Employes
-
>
Yams
Deling
-
Bug/Rilken BMVV/Ari / Cultur
EDA EDAX
IAX
PEM
)
locally Mamfuctud - New
(EDA)
Inputed -
New/Uxed (2DA)
SDA
① PEM =
firsttime me in Pall
Velice
② ->
plying for his
I. A 25%
=
③ Office spiprent
④ tomate as IT related item
) Mr. Akmal
-& Rent
3 Floor -
lost 9,500,000 -Cyn= IFB
Depo 10 I 1950,000)
XDY -
3010/2
-
8.550,000
I
Allow(950 2/3)+
1633,333)
=
-
0 #2) Mr. Shabbir ->
Vehicle (Notplain for line) -> EDAX =>
1AX
Ty-2042 T4-2043 TH-20+Y
lii l/ I
Lost / [Link] 1,300,000 1, 105,008
Dep 0 15%
21. WDY
Dep-Allowed (70%) 136,500 (16,025-
Dep-Disallowed (30%) 58,500 49.725 -
Gain((loss) -
20 x 4
Vehic ④
Consideration 600,000 H
2. Tax WDY 939,250 p
Held. Dep disallowed 100, 225
(,047,475) DA
I
due to non busten be -
140257.
Gain/(loss) 1447,4757
#poo
	) Anwar limited
Lost -
14-2019 5,000,000
1. A 025% (1,250,000)
- -
XDY 3,750,000
Dep-20x9 0 15. (562..08)
~DY-3016/x9 3. 187,500
Dep-20x10 0 15% 1478.125)
xD4-30/6/x10 2,709,375
Dep-20x4 0151 (406,406)
WDY- 30/0/x 2,302,969
Dep-20x12815% (345,445)D
30/6/[Link] 1,957,524
Depreciation of Leaved Asset Financial
Reporting
-
Tax leave ->
->
Operating leave
F.L 0.L
Icas
Lessee
Specified Lesson H >
I
0.p. Lease
Income 2xp
Rental
(Deb)
-
>
Lower
of
-
Dep on leaved Aut
-
Renke game
⑧ Commercial Lease reactions
ownup Leek
s.p. Lesson ->
-
Lessee
I
Rental H [Rental 20p => sxx29]
Betal frame X
-
-Assure
Albe
be. Dep
st
I
on L.A
IFB
"Islamic Leasing Transaction JointOwnsharships
- >
Mushailla
Isknis Bank
Dinisatin Lesse
->
- 1so Use
2I
J.0
·
Asset -
ownership
-
) ABC Leaving 10.
IFB TY-20x2 TY-2043 TY-20x4 TY-20x5
Renful Income (70 xa)(70x3) 630,000 040,000 &40,000 210,000
-
other burner Sheare 200,000 -
m
250,000
ze. 1. AE,
Dep-Current (725,000) (191.350) (162.562) -
bIf -
(95,000) - -
Loss
dispose (300,000 921,100) (621, 180)
-
on
IF B 200,000553.750677,438 (161,180)
Dep -(f(725 630) -
195,000) - - -
best 2,000,000
1. A
025% -
500,000)
x1DY 1,500,000 725,000
-
Dep(20x2) 018. L
225,000)
xDY 30/0/x2
-
1,275,000
- -
Dep (2013) 0157. (191,250)
XDY -3016/x3 1,083,750
Def (20x40 1st. (162,562)
-
WDY-3010/x4 188
Dep (20x5)
-
XDY / Dispon) AIO
- -
Immoreble
Property
Land
Building
Person te Brine Use
Pennel t Beinen Use
H t -
An H
2. A 2. A
2. A
H H I Dep. Asset
2.4 C H
2.G
IFB
Act2012
Finance
A IP⑰
c. A-
Question #5
Lass) (b)
Lost 100 100
loss=(0) I
hain
50-
->
Insulation -
60 150
-
lenidection cost X -
Tax Gein/(luss)
Camilection 60 150
Zee. TheWDY
Lost/Treated lost 100 150
ze. Are (30)
dep -(30)
-
(120)
-
WDY
Gain/(loss) 30
- -
-
- -
016) ABC limited
20x5 6
24 - >
-
Lost 1,000,000
7. A
025% 1250,000C
<
875
- -
-
637,58
WDY-
open. 750,000
-
-
Tax
Dep 151. 0
(112,5007
- - I
95, 625) -
NDY-closing
-
837,500 541,075 541,075
--
-
-
Tax Gain //loss) on dispose(a) (b)
Consideration (Treated Cost1,000,000 1,000,000
Le Tax
WDY 1541,875) 1541,0757
Tax
gain on disposal 450,125 458,125
Amortisation of Intangibles
-
Method of Amortization -
Straight line
I us tel
-
Useful life -> it available i
->
if notmeasurable -> 25years (Assume)
(No of
-Proportionate days) amortization in firstyear/purchase
year
No
amortization in the
year of disposal.
-
- Acquired No
Amortization
-
Intangible -
Disposed
in same tat
year
->
Isthe
->
↓
&#
TY-20x5 TY-20x6 TY-20N1 TY-20x0
- - - -
Lost -
1/4/x5 1,000,000 950,137 75 137
,
-
No Amortigetin
Amortization 149,063) (200,000 1200,0007
(200,000 35) Gain/loss)
+
C. NDY 950.137750,[Link] 450,000
Consideration
he. WDI (550,137)
IFB:Amort
deduction 22,430 90,000 90,000
allowed (45%) Loss on dispose (100,137)
1,000,000 200,000
-
-
5
Bad Debt [Section 29]
Marketing Co. Trade Rec -> Deduction v
Trade Ree N
*
Sale PK XXX
- Lan Rec Deduction
Lan Rec X
↓
Gen XXX
Bank-Loan Rec -> Deduction W
Loan Re NX
Oct X
↓
but
RecDedeter
re
but are X
Manfetuy Co
custome A B Frrecousle
2
=> s
w/off.
u
-
-
-
E
Receivable 500,000 400,000
- Deductin allowe
- -
by Tux lis 350,000 320,000
-
-
Dedreti disallowe -5,00 80,000
y
E
-
3
Subsequent Recovery 190,000 50,000
Exer Is wortfall 40,000
- -
(30,000)
Income
-
-
E
&# 15
-
(b)
-
(a)
most
I of debt 500 500
- - -
Fax year 2016 - Allowed 300 300
- -
Disallowed 200 200
- -
-
Tat
year 2018
-
Subsequent Recovery 350 100
T
-
Disallowed (200
Income/(Deduction)