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Miss Seema, is a resident individual, shares following information in relation to previous year
Salary Income (Net)
Business Income(Net)
Long term capital gain on sale of land and Loss from Gambling in a game
Amount in Rs 200000 350000 16000 30000

There are certain other types of losses -Unabsorbed Depreciation
Short term capital Loss
15000 10500

a. Define and Compute Gross Total income

b. Discuss the concept of carry forward of losses with reference to above context also, discuss the amount of Loss that can be carried forward in the said case. In case it’s any number 15000/10500/Nil give reason for the same.
8. Avoplant is in the agriculture industry. It basically plants and sells avocado. The company owns a huge piece of land in South Lebanon at an elevation of around 400m above sea level which makes it perfect place for avocado. Avoplant is all equity financed. The company is planning to go public and investors are estimating its cost of equity. You are asked about the beta of the company. Which, in your opinion, is your best guess about the company’s beta:
a. Beta of Avoplant is low because people will eat no matter of what the economic situation is.
b. Beta is low because of their business model perfect location for avocado and no debt.
c. Beta is high because the demand for avocado is sensitive to economic conditions
d. Beta is high because there is a high chance of having a bad crop this year
e. Beta cannot be determined because we do not have a reliable market index for Lebanon
Depreciation is the reduction in the usable value of fixed assets due to normal wear and tear of time. Depreciation is an indirect non – cash expenditure which is provided on SLM or WDV basis.
Rahul is new junior accountant with Hardwork Mills Private Limited he wants to understand normal depreciation differs from additional depreciation. As a tax adviser, guide him on the two concepts and discus the cases where additional depreciation is not allowed.
Calculate the present value of a growing perpetuity with the following information (round off the
answer to the nearest rand):
Cash flow at the end of the first year R60 000
Growth rate (g) 10%
Opportunity cost 20%
What will my investment of R100 500 be worth if my bank pays me simple interest of 9% per
annum and I invest my money for 180 days?
If producing 200 buttons and 200 safety pins daily is a 50 1/0 split of resources, where do we see the opportunity cost if you decide to produce 300 buttons and 100 safety pins ?
prepare a corrected Debtors control account using the information provided above(Note : The opening balance of R10 000 is incorrect)
the following pre-adjustment trial balance appeared in the books of musketeer traders at the end of their financial year 30 September 2019 ignore VAT
Members’ % Interest Contributions
Barry Behr 50% R500 000 (cash and equipment)
Doris Daniels 40% R400 000 (cash)
Mo Mgotso 10% R100 000 (cash)
The following balances, amongst others, appeared in the CC’s books at the end of the current
financial year, 31 July 2020:
Members contributions R1 000 000
Retained Earnings (1 August 2019) R236 000

With regards to the financial year ending 31 July 2020, the following information was available:
1. On 31 July 2020, the CC recorded a profit of R940 000. This profit was after taking into
account transactions with members like remuneration.
2. The income tax for the year is calculated at R260 000.
3. The members are entitled to a distribution of profit of R45 000 each, irrespective of how
long they have been a member.
Open, post to and balance the Appropriation Account for the year ended
31 July 2020.
Equipment at carrying value R75 000
Vehicles at carrying value R 125 000
Trading inventory R180 000
Cash in bank R32 000
Debtors R31 500
Creditors R8 500
Loan: Second Bank (14%) R50 000
 The bank statements show a credit balance of R48 790 as at 30 June 2020.
 All the cash received has been deposited.
 A stock‐take performed on 30 June 2020, showed inventory on hand with a cost price of
R230 000.
 The debtors balance at year‐end is R38 000 and the creditors balance is R16 225.
 Equipment was purchased during the year at a cost price of R5 000.
 Depreciation on vehicles for the year amounted to R20 000 and for the equipment R15 000.
 The owner took R23 000 in cash for personal use during the year ended 30 June 2020.
 R5 000 was repaid on the loan during the year.
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