1: Sociology can be defined as:
► The study of people in relation to their fellow human beings   (page no 15 on handouts)
► The study of societies which help to learn about human and their activities
► It is the study of behavior of the individuals or groups within the political environment
► The science that seeks to measure and explains human behavior
2-The Great China Wall has been built in almost:
► 900 years
► 956 years (page no 3 on handouts)
► 856 years
► 1000 years
3- To motivate the employees a manager should give them:
► Monetary Incentives
► Promotion
► Appreciation certificates
► All of the given options (page no 88 on handouts)
4: Which of the following is most important characteristic of an entrepreneur?

CS402 1st Assignment idea solution last date 5th Nov 2012

We draw a Finite Automaton (FA) in the following manner: The machine's states are represented by circles and transitions are represented by arrows

A finite set of states, one of which is a start state, and some of which may be designated as accept states or final states.
An alphabet .
A finite set of transitions that tell for each state and for each letter of the alphabet which state to go to next

We draw a Finite Automaton (FA) in the following manner: The machine’s states are represented by circles and transitions are represented by arrows. Every transition is marked by a symbol from the alphabet . The start state is marked by a – sign and the final states are marked by a + sign as shown in the FA for a*ba*.



We draw another Finite Automaton (FA) below which accepts any string from ab*.




We draw another finite automaton which accepts all strings from a*bb*aa*(ba*bb*aa*)*.




The Transition graph that accepts only theempty word is,



Now by reversing an edge of "a" the above transition graph accepts the language a*





The resultant TG is

Phy301 1st Assignment Fall 2012 Due Date: November 05, 2012

Solution:: 
Q 1:
Find the equivalent resistance RT of given circuit. Write each step of the calculation to get maximum marks. Draw the circuit diagram of each step otherwise you will lose your marks. 

Ans: RT = 13.869 omega






We start from the right top side
20 omega and 30 omegas are in parallel so we solve it by using parallel formula. Ans will b 12 omega and then solve remaining circuits. 





Q 3:
Answer the following questions. 
I. If you wish to increase the amount of current in a resistor from 100mA to 150mA by changing the 20V source, by how many volts should you change source? To what new value should you set it?

Ans: V= 30volts 

II. How much power is produced by 500mA of current through a 4.7kΩ resistor?

Ans: P= 1.175kW

III. There are four equal value resistors in parallel with a 12V source, and 4mA of current from the source. What is the value of each resistor?

Ans: The value of each resistor is = 3k omega

STARTING DATE IS Wednesday, October 24, 2012

closing date is Thursday, October 25, 2012


GDB solution :
Transportation developments that have taken place since the beginning of the industrial revolution have been linked to growing economic opportunities. At each stage of human societal development, a particular transport mode has been developed or adapted. However, it has been observed that throughout history that no single transport has been solely responsible for economic growth. Instead, modes have been linked with the function and the geography in which growth was taking place. The first trade routes established a rudimentary system of distribution and transactions that would eventually be expanded by long distance maritime shipping networks and the setting of the first multinational corporations. Major flows of international migration that occurred since the 18th century were linked with the expansion of international and continental transport systems that radically shaped emerging economies such as in North America and Australia. Transport has played a catalytic role in these migrations, transforming the economic and social geography of many nations. Concomitantly, transportation has been a tool of territorial control and exploitation, particularly during the colonial era where resource-based transport systems supported the extraction of commodities in the developing world and forwarded them to the industrializing nations of the time. More recently, port development, particularly container ports, has been of strategic interest as a tool of integration to the global economy as the case of China.

Idea Solution :

What is SMEs

Small and medium enterprise (SME)

Business segment term used differently in different countries, sometimes differently in different industries in the same country. In the US, any firm from a small-office home-office (SOHO) to a large corporation may be called a SME. More specifically, firms included in Russel indices such as Russel 2500 index and Russel Midcap index are classified as SMEs. In European Union, a firm with (1) 50 to 250 employees, (2) annual turnover of Euro 7 to 40 million, (3) total assets less than Euro 27 million, and (4) not more than 25 percent ownership by a large corporation, may be classified as a SME. The International Chamber Of Commerce (ICC) defines a SME as having 100 to 2000

Critical factors which prove hindrance in the way of Small and Medium Enterprises to grow in Pakistan

Fiscal and monetary issues
Business Development Services
Development and strengthening for SME representative bodies associations/chambers
Lack of service provider’s database including machinery and supplier for SMEs.
securing financing
Donor assistances for SME development______________________________________________
One More Solution

SMEs can contribute to the economic development of Pakistan by following steps

Complete picture - an holistic, constructively critical attitude is developed, providing fresh insights into company practices
Productivity
areas of bad practice and poor performance are identified
sources for improvement are found by looking at the performance of other companies, without trying to reinvent the wheel
change is accelerated by using tried and tested methods
Competitiveness
reference points for measuring performance are developed, which provide early warning signals and rectify inaccurate perceptions about competitors
the company's true position in relation to competitors is established
Growth - the case for change is promoted through the development of clear strategic action plans
Opens minds to new opportunities
an active learning process is initiated
better performers are identified as a source of improvement ideas
'outside the box' thinking is promoted by looking for ways for improvement outside the industry
External parties - relations are improved by reporting strengths and weaknesse

Idea solution The benefits of E commerce in Pakistan:

 E commerce allows people to carry out businesses without the barriers of time or distance. One can log on to the Internet at any point of time, be it day or night and purchase or sell anything one desires at a single click of the mouse.
The direct cost-of-sale for an order taken from a web site is lower than through traditional means (retail, paper based), as there is no human interaction during the on-line electronic purchase order process. Also, electronic selling virtually eliminates processing errors, as well as being faster and more convenient for the visitor.
 
E commerce ideal for niche products. Customers for such products are usually few. But in the vast market place i.e. the Internet, even niche products could generate viable volumes.
Another important benefit of E commerce is that it is the cheapest means of doing business.
The day-to-day pressures of the marketplace have played their part in reducing the opportunities for companies to invest in improving their competitive position. A mature market, increased competitions have all reduced the amount of money available to invest. If the selling price cannot be increased and the manufactured cost cannot be decreased then the difference can be in the way the business is carried out. E commerce has provided the solution by decimating the costs, which are incurred.
From the buyer’s perspective also e commerce offers a lot of tangible advantages.
Reduction in buyer’s sorting out time.
Better buyer decisions
Less time is spent in resolving invoice and order discrepancies.
Increased opportunities for buying alternative products.
The strategic benefit of making a business ‘e commerce enabled’, is that it helps reduce the delivery time, labor cost and the cost incurred in the following areas:
Document preparation
Error detection and correction
Reconciliation
Mail preparation
Telephone calling
Credit card machines
Data entry
Overtime
Supervision expenses
Operational benefits of e commerce include reducing both the time and personnel required to complete business processes, and reducing strain on other resources. It’s because of all these advantages that one can harness the power of e commerce and convert a business to ebusiness by using powerful turnkey ecommerce solutions made available by e business solution providers.

MKT501 GDB Solution Fall 2012

Scenario:
Task:
Write a paragraph on the significance of marketing management in this global era.
Reference:
Kotler, P., K. L. Keller, et al. (2009). “Marketing Management: A South.” Asian Perspective.

Solution:
Understand the question, significance means importance
1. Marketing helps to boost up product sale
2. it make awareness about product
3. marketing enhance company’s reputation
4. profit increase
5. globally recognition
6. country’s economy increase
7. product life cyle increase
8. revenue maximization
9. company growth
10. increase industries
11. gobal solidarity enahce
12. identifies new and/or potential customers
13. opportunity to enhance product’s features
use this type of points to answer the question in paragraph

Case:
Despite of big investments, productivity of Domino’s Pizza is declining in Pakistan during few years. Due to this problem management of Domino’s Pizza in Pakistan decides in a meeting that this problem should be addressed on immediate bases and the task is given to the assistant manager operations. Think yourself as assistant manager and discuss the major factors that can affect the productivity improvement of Domino’s Pizza either positively or negatively. Support your answer with the knowledge of production and operations management. 
Important Instructions:
Your discussion must be based on logical facts. · The GDB will remain open for 3 working days · Do not copy or exchange your answer with other students. Two identical / copied comments will be marked Zero (0) and may damage your grade in the course. · Obnoxious or ignoble answer should be strictly avoided. · Questions / queries related to the content of the GDB, which may be posted by the students on MDB or via e-mail, will not be replied till the due date of GDB is over.

Solution:
The role of operations manager is to sustain, protect and project the company’s operation side. The productivity of a firm may decrease due to decrease in its demand. The operations manager can make the productivity improvement of Domino’s Pizza by following these important rules in operations side.
1) Product and service design.
The design of the product should be favorable to the consumer.
2) Quality
The quality should always match the price and service.
3) Inventory management
The inventory management should safe and sound.
4) Supply chain management
Develop and sustain an active supply chain between the suppliers and the customers.
5) Cost and cost leadership strategy helps to offer the product and service at an economical price.
6) The products should be as according to the customer needs and taste.
Through these important points in the operations side the firm can make improvements in its productivity.

 ACC501 GDB Solution Fall October 2012

Discussion Question:
Shareholders are considered as the owners of a corporation so “wealth maximization of the shareholders” remains one of the main goals of the corporation. Even so, sometimes there may develop a situation when managers pursue their own goals at the expense of shareholders’ goals. This situation of conflict is termed as “Agency Problem”. In this particular situation, agents (managers) emphasize only those aspects of performance that are related to their own interests by ignoring the interests of principals (shareholders). In order to align the managers’ goals along with the shareholders’ goals, the corporation has to incur some agency costs. You are required to discuss the techniques of aligning the “agent-principal” goals for which the agency costs are generally incurred.
SOLUTION:

Sacrifice, as practised by Holy Prophet Muhammad (PBUH) is an essential religious rite in memory of the sacrifice performed by Prophet Abraham. God put Abraham to a most difficult trial, the details of which are described in the Quran. ?O my Lord! Grant me (Abraham) a righteous (son)!? So We gave him the good news of a boy ready to suffer and forbear. ?Then, when the the son reached the age to work with him, he said: ?O my son I see in a vision that I offer you in sacrifice: Now say what is your view!? (The son) said: ?O My father! Do as you are commanded: You will find me if God so wills, one practising patience and constancy!? So when they had both submitted their wills (to God), and he had made him prostrate on his face (for sacrifice), We called out to him: ?O Abraham! You have already fulfilled the vision!? Thus indeed do we reward those who do right. ?For this was obviously a trial and We ransomed him with a momentous sacrifice: and We left (this blessing) for him among generations (to come) in later times: (37:100-109).
This is the origin of the Islamic precept of sacrifice in fulfillment of God?s command provided in the Quran: ?… to your Lord turn in prayer and sacrifice.? (108:2).
The aim of sacrifice, like all other fundamentals of Islam, is to imbibe piety and self righteousness. It also promotes the spirit of sacrifice for a right cause. To explain its purpose, God says in the Quran. ?It is not their meat, nor their blood, that reaches God, It is their piety that reaches God?: (22:37)
Prophet Muhammad (Pbuh) said: ?On the 10th of Zil-Hijjah, there is no better act in the view of Allah than shedding the blood (of slaughtered animals). And verily sacrifice earns the approbation of Allah even before the drop of blood (of the slaughtered animal) falls on the ground. Hence you should offer it in good spirit. For every hair of the sacrificial animal, there is a blessing.? Here are the precepts and practices pertaining to Qurbani, according to Hanafi Fiqh.
Qurbani is Fardh for :
Qurbani, like Zakat, is essential for one who has the financial means and savings that remain surplus to his own needs over the year. It is essential for one?s own self.
However, a slaughter of animal can also be offered for each member of one?s family. It may be offered, though it is not essential, for one?s deceased relations, too, in the hope of benediction and blessings for the departed souls.
What to Sacrifice
All the permissible (halal) domesticated or reared quadrupeds can be offered for Qurbani. Generally, slaughter of goats, sheep, rams, cows, and camels is offered. It is permissible for seven persons to share the sacrifice of a cow or a camel on the condition that no one?s share is less than one seventh and their intention is to offer Qurbani. Age of Sacrificial Animals
Sacrifice of goat or sheep less than one year old (unless the sheep is so strong and fat that it looks to be a full one year old) is not in order. Cow should be at least two years old. Camels should not be less than five years old.
Disqualifying defects
Sacrifice of an animal will not be in order if it is one eyed, or blind, or has lost one third or more of its eyesight, or one third or more of its tail, or its ear has been cut off, or it is lame, or its bones have no marrow, or it has no ears by birth or its horns have been broken from their roots, or it has no teeth at all. If the number of teeth intact exceeds the lost ones, it is permissible. If it has no horns by birth, or has less than one third broken horns, it is permissible.
Distribution of meat
One should eat the meat of the sacrifice, give it to relations and friends, (to non-Muslims also) and also to the poor in charity. One third should be given in charity, but if it be less it will not be a sin.
Injunctions on the use of skin
It is not permissible to give a portion of meat or the skin of the slaughtered animal as wages. They should instead be given to the needy in charity. Even the rope and cover of the sacrificed animal should be given away as charity.
Intention
It is commendable that one who intends to offer a sacrifice should refrain from having a hair cut, a shave, and pruning of nails, from the 1st of Zil-Hijjah (upto the time he has performed the sacrifice).
Intention In the first instance, one who proposes to offer sacrifice must make an intention to that effect.
Method of Sacrifice
The animal for slaughter should be laid on its left side facing Kaabah and its throat cut open with a sharp knife, and its blood allowed to drain. In the case of a camel, it should be allowed to remain standing after its left fore leg has been stringed. A sharp spear should then be thrust in its breast and on both sides of its neck, and the blood allowed to drain.

MGT601 GDB Solution Fall October 2012

Real time Scenario
Most of the businessmen operating in SME sector in Pakistan are blaming government for not providing adequate infrastructure required for smooth business operations and expansions. Sky rocket prices of patrol and transportation and unavailability of electricity is not less than a nightmare for SMEs owners. But this is the one side of the coin, on the other side the owners of SMEs are not effectively playing their due and awaited role. For example, businessmen who have inherited businesses from their families are not cracking the innovation in true sense. Most of the business ideas are just imitation of most prevailing investment opportunities. Most of the business ideas not dynamic which could allow the business expansion go beyond the local city. In addition to aforementioned discussion, most of the businessmen are not even aware of the importance of market research and considered this activity as waste of time and money. Right now the SME sector is fighting with multifaceted problems and requires attention of both, the government officials and business owners.
Point of Discussion (POD)
Being the student of SMEs, you are required to first list at lest ten (10) challenges/difficulties currently faced by SMEs in Pakistan that can be solved by businessmen. Secondly you are required to discuss the possible precautionary measures ( at least five) that must be taken by the businessmen themselves to combat those challenges instead of waiting for government support
SOLUTION IDEA:
I think ths GDB includes those challenges which SME’s are facing in ths era such as Technology, Infrastructure , Finance , Knowledge etc…
And the remedies 4 ths r also reverse of these factorss..

MGT613 Current GDB Solution Fall 2012

Despite of big investments, productivity of Domino’s Pizza is declining in Pakistan during few years. Due to this problem management of Domino’s Pizza in Pakistan decides in a meeting that this problem should be addressed on immediate bases and the task is given to the assistant manager operations.
Think yourself as assistant manager and discuss the major factors that can affect the productivity improvement of Domino’s Pizza either positively or negatively. Support your answer with the knowledge of production and operations management.
 
Solution will be update as soon as possible..

Regional Textile Limited (RTL) purchases raw material from various vendors with an average payment period of 45 days. Most of the sales are on credit and average collection period is 50 days. There is a gap between the cash collection and payment as the management is unable to recover debts within 45 days.

Required:
What measures can be taken by RTL to reduce the above stated gap ?

SOLUTION:
RTL have to get/secure money from banks in terms of loan and have to pay to creditors on 45th day. When RTL recover it from debtors this will be used in settling in their loans, but there is additional cost incurring and that is interest. When we get loans from banks we have to pay the interest.
OR
RTL should negotiate with the vendors to enhance payment period as 50 days or above. Or
RTL should increase its sale volume to gain maximum profit and this profit should not distribute among shareholders and should cover the payment gap with vendors.
OR
Clear and Concise….
To reduce gap they should secure short term loans from the banks, which could be repaid when they receive the cash from debtors.

To understand the key decisive factor in working capital management with the help of liquidity ratios. Late Date 24 Oct 2012

Learning Outcome:
After going through this GDB, the student will be able to recognize the importance of working capital management.

The Case:
Eco Tyre Ltd. (ETL) – incorporated in year 2003 and entered into automobile tyre manufacturing business by introducing a new tire manufacturing technology. Over the years, ETL has been recognized as a tyre market leader. But, now a day, ETL is facing hard time due ineffective control of its working capital items.

Following data has been developed from its comparative balance sheets:

Ratio FY 2010 FY 2011
Current Ratio 0.60 Times 0.79 Times
Quick Ratio 0.45 Times 0.61 Times
Return on Asset 9.7% 12.5%
Inventory Turnover 28 Times 15 Times
Avg. Collection Period 13 Days 24 Days
Short-term Debt 4 million 4 million
Total Asset Turnover Ratio 2 Times 5 Times
Credit Sales to Cash Sales Ratio0.45 Times 0.67 Times

Required:
Being a financial analyst, do you think the liquidity of a company is satisfactory?

Idea Solution:
Liquidity of the company is not satisfactory short term debt.
It is unsatisfactory, since, the current ratio is also the liquidity ratio. As long as the current ratio is between 1.5-3 the company is good. However below 1 means that current liabilities are exceeding current assets.

Complete solution will be update as soon as possible

The Case:

STA630 GDB Solution Fall October 2012

Concept to be tested: Type and use of Research
Sara works in a renowned FMCG company as an HR manager where she handles recruitment, selection of employees, and other HR functions. Her major area is training and development of employees where she develops training modules and conducts training sessions. Sara is also doing her MS in HRM and she is up to start her research project however she has completed her course work successfully. Her supervisor has asked her to do research work which carries significance. After thinking rigorously she has decided to work on effectiveness of training program. An intensive literature review has enabled her to define the concept “effectiveness”.
At beginning, in order to describe and explore the effects of training program on employees, Sara thought to collect data from different organizations which conduct training for its employees to examine impact of training. After discussing with supervisor, he guided her to take data from her own organization to deeply examine the impact of training on employees. Sara found it something easy and worthy. She specially designed a training session on presentation skills to check the effectiveness of this training program among employees. She selected a sample and took data before training session and after training session. She developed a structured questionnaire to measure the effectiveness of training session – knowledge, skills and understanding of employees. Sara also observed how effectively employees practiced learning throughout the session and kept a record.
1. Which type(s) of research strategy is/are employed in this case? Support your answer with logic.

SOLUTION:
Exploratory research is a type of research conducted for a problem that has not been clearly defined and Quantitative research refers to the systematic empirical investigation of social phenomena via statistical, mathematical or computational techniques So this is exploratory research as well as it is quantitative research. The results of exploratory research are not usually useful for decision-making. if we collect data through a questionnaire it can be either qualitative or quantitative. but initially it will be quantitative research some times followed by qualitative research.

MGT401 GDB Solution Fall Oct 2012

Professionals’ Group Associates (PGA) – a professional promoter has recently conducted a test for its yearly recruitment. In the test, one of the questions was about the name of a prime document providing the status of the “members’ liability” in any company working in Pakistan. This document along with other documents is required for the registration of a joint stock company in Pakistan.

You are required to:

1. Mention the name of the document carrying the status of “members’ liability”;
2. Briefly describe the true meaning of “member’s liability”; &
3. How a company can be recognized as a limited liability company through its name?

MGT211 GDB Solution October Fall 2012

SKI Ltd runs an assembly plant for laptop computers. Managers of the company hold a meeting after six months to review current position of the business and the long term plans. Extracts from the most recent meeting are as follow:
 Marketing manager said that sales of our latest OLED screen models have exceeded expectations and the shift toward laptop with OLED display from TFT screen models is expected to continue. The company also has a chance to expand his business by entering into African market, as the trade barriers has been removed by African countries and its market has high growth potential for the company.
Operations manager revealed; the automation of the screen assembly section is in progress. Last month, we turned down a big order due to little factory capacity and shortage of skilled labor. I do propose to extend the factory space and to train more new workers.
Finance manager conferred that our profits are steadily increasing, but due to expenditures on automated machines and on research & development activities, we are facing shortage of cash flow. We need to borrow funds but we would be in trouble as interest rate has increased. At the same time, we must constantly be aware of exchange rate fluctuations as recent depression helped us to be more competitive in local market.
Requirement:
You are required to conduct SWOT analysis for SKI ltd by identifying its one strength, one weakness, one opportunity and one threat, only in bullet form.

Q. How is a course in organizational behavior going to make him a better manager?

If you have an understanding of how people and organizations work it will help you as an
manager. A good example of this is that every time a new member joins a company or
team the social structure of the group has to change because there is a new person added
to the structure. By understanding this as a manager you can help the new person adjust
and help the people around them to adjust to the social change in the group overall
structure. This will help you do your job better.
If you are managing a department store for instance. You want to have a great
relationship with all of your employees and encourage them day in and day out. You
want to have meetings and benefits so that your employees build strong relationships
with each other in the work area. Most importantly of all, you want to build trust between
you and your employees
In any organization one can assume that the main goal of that business is to succeed;
what exactly does being a winning organization mean and what does it take to get there?
In the past companies placed a great amount of emphasis on the numbers and how to
achieve those numbers. The people who actually helped achieve those numbers were
graded on their technical skills, productivity, and budgets. Employees were
moneymaking machines and how they achieved those numbers was not a concern of their
managers as long as the numbers were being met. Organizational behavior studies have
become more important today than in previous years because corporations must learn to
adapt to the rapidly changing business cultures that have stemmed from a competitive
and fast-paced market. Organizational behavior was a topic that was not discussed until
an employee's behavior changed, productivity changed, or sales decreased. In today's
business world, managers are paying more attention to how employees react to situations
rather than if they respond.

MGT503 - Principles of Management-- GDB SOLUTION Fall 2012


Discussion:

1st of all understand the concept of profit organizations and nonprofit organizations
When you start a business, it is for the financial benefit of its owners and/or shareholders. Profit is the goal and the business pays taxes on that profit.
A nonprofit entity has a mission that benefits the "greater good" of the community, society, or the world. It does not pay taxes, but it also cannot use its funds for anything other than the mission for which it was formed.
Nonprofit organizations can and do make a profit, but it must be used solely for the operation of the organization or, in the case of a foundation, granted to other nonprofit organizations.
When a for-profit organization goes out of business, its assets can be liquidated and the proceeds distributed to the owners or the shareholders. When a nonprofit goes out of business, its remaining assets must be given to another nonprofit.

another:

Now check out the 14 Management Principles developed by Henri Fayol:

DIVISION OF WORK: Work should be divided among individuals and groups to ensure that effort and attention are focused on special portions of the task. Fayol presented work specialization as the best way to use the human resources of the organization.

AUTHORITY: The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility.

DISCIPLINE: A successful organization requires the common effort of workers. Penalties should be applied judiciously to encourage this common effort.

UNITY OF COMMAND: Workers should receive orders from only one manager.

UNITY OF DIRECTION: The entire organization should be moving towards a common objective in a common direction.

SUBORDINATION OF INDIVIDUAL INTERESTS TO THE GENERAL INTERESTS: The interests of one person should not take priority over the interests of the organization as a whole.

REMUNERATION: Many variables, such as cost of living, supply of qualified personnel, general business conditions, and success of the business, should be considered in determining a worker’s rate of pay.

CENTRALIZATION: Fayol defined centralization as lowering the importance of the subordinate role. Decentralization is increasing the importance. The degree to which centralization or decentralization should be adopted depends on the specific organization in which the manager is working.

SCALAR CHAIN: Managers in hierarchies are part of a chain like authority scale. Each manager, from the first line supervisor to the president, possess certain amounts of authority. The President possesses the most authority; the first line supervisor the least. Lower level managers should always keep upper level managers informed of their work activities. The existence of a scalar chain and adherence to it are necessary if the organization is to be successful.

ORDER: For the sake of efficiency and coordination, all materials and people related to a specific kind of work should be treated as equally as possible.

EQUITY: All employees should be treated as equally as possible.

STABILITY OF TENURE OF PERSONNEL: Retaining productive employees should always be a high priority of management. Recruitment and Selection Costs, as well as increased product-reject rates are usually associated with hiring new workers.

INITIATIVE: Management should take steps to encourage worker initiative, which is defined as new or additional work activity undertaken through self direction.

ESPIRIT DE CORPS: Management should encourage harmony and general good feelings among employees.

FIN623 - Taxation Management Subjective Questions from Final Exam 2012

FIN623 Taxation Management - Question:  Subject: Deduction at source

Dear sir, If salary of person is not fall in tax rate, than what will be the accounting entry in business, 1. Either this salary is treated as business expense and deducted during taxable income computation, 2. Or this salary is not taken as expense and not deducted from taxable income. If the deduction at source is done at a particular rate as the salary of the person fall under the tax rate , than 3. Is this deduct able amount submitted to govt. as tax ? 4. Is the balance salary treated as expense ? regards.

Instructor's Reply:

If salary is below the taxable limit then no tax is charged. The tax deduction at source is done on those salaries which are taxable. The whole amount of tax is gathered and submittes to tax department. The amount of tax on each taxable salary is calculated according the specific slab rate in which the salary falls.

FIN623 Taxation Management - Question: Subject: Depriciation

Dear sir, As u replied my question of depreciation, Then either the asset is disposed off or sold out. If it is sold then the salvage value is booked and the asset is removed from the Balance sheet. In above answer if the case is that the asset is neither sold out or disposed off, and continuing in process what will be the treatment. And if a some changes its status from individual to Limited company than what will be the treatment of assets and depreciation it the life of assets is more than 10 years. As fixed assets value is not shown in individual balance sheet, now what will he do? Regards.

Instructor's Reply:

All the assets have their estimated useful life and depreciation is charged uptill the end of the estimated useful life of the asset. It is necessary for the companies to charge the depreciation. When the asset is of no more use then it is disposed off or sold out. There is no other method to deal assets. It is the normal process which is done in the companies.

FIN623 Taxation Management - Question: No.concept is clear about "Accrual basis mandatory" adopt only the company or any firm. please shortly brief in this regards. Thanks.

Instructor's Reply:

This is the accounting system. It means that it is necessary for the companies to adopt this system. The sole proprietor can use the cash basis system of accounting.

FIN623 Taxation Management - Question: Dear sir, In lecture 36 example 1, The salaries amount is added back as no deduction at source is done. But the question is that if we take the total amount Rs.350,000/- than tax calculation are done at a given rate, but either this salary is for a single employee or more than 1 employees. If this salary is for 3 employees 100,000+100000+150000 per Annam than why we deduct tax at source because their salary is tax exempt according to schedule. And why these amounts are added back. Similarly if this salary is for a single employee than there will be tax deduction at source. So plz clear my point. Regards.

Instructor's Reply:

This tax calculation is at the end of the company not at the end of employees. On salaries tax was not deducted by the company that is why that amount would become the income of the company and would be added back, these amounts were added back and tax will be calculated on total amount after adding back all the missing items given in the example.

FIN623 Taxation Management - Question: Mr. Tareen let out a house at the monthly rent of Rs. 150,000 and received a deposit of Rs. 65,000 not adjustable against the rent. What would be his tax payable?  ► Rs. 3,250 ► Rs. 325 ► Rs. 92,400 ► Rs. 215,000  Yearly salary.....150000*12 = 1800000 +=non-adjustable advance    =   6500 total                                     =   1806500 Tax payable = 57500 + (806500=806500*10/100) tax payable= 138150  but there is not such option in above question.

Instructor's Reply:

Your answer is right. From where you have taken the question?

FIN623 Taxation Management - Question: Respectable Sir,                 Sir please tell me that Mr. A Resdent person and live in 182 or more days in Pakistan his income Applicable for taxable income?

Instructor's Reply:

FIN623 Taxation Management - Question: Sir I have a few questions from the excercises in Lect. 32:  1. Excercise 1 (pg. 64). How have you computed the rental income?  2. How repairs have been calculated in the same excercise.  3. How do we apply tax rate of 5% when the gross amount is Rs. 1,880,000 (before subtracting deductions). In notes, it says that where gross amount exceeds Rs. 1,000,000; rate of tax will be: Rs. 57,500 and 10% of exceeding amount.  4. Finally, in Excercise 2, the rental income is wholly exempt because Mr. A is an individual. However, in the previous excercise, Mr. A is also an individual and yet we have made no exemptions from his rental income. Please explain.  Thank you so much for your help, sir!

Instructor's Reply:

In exercise # 1 the rental income has been given in the question. The value of repairs is calculated by taking 1/5 of the gross rental income. So 1/5 of 1880,000 is 376,000. The note has been given in the end of the exercise. The rate of property tax is 5% which has been applied. It has been discussed in the video lectures. There is misprinting in handouts. I have updated them. Do not worry about this. In exercise # 2 the amount of rental income is 120,000 which is less than the minimum taxable income from the property i.e. 150,000. That is why tax has not been applied.

FIN623 Taxation Management - Question: Dear Sir, A person file the tax return having 250 sq.yard of land. Plz clarify either this land is  residential or commercial?

Instructor's Reply:

It depends whether the registration of the land has been done as residential, agricultural, or  commercial baisis.

FIN623 Taxation Management - Question:  Dear Sir, A company have no. of employees but all of them have salary not come in tax liability of individual. Now the salary paid by the company is treated as expense or not, as no tax deducted at source as no one employee fall in tax liability.

Instructor's Reply:

Then company will not deduct the tax at source and when there will not be tax deductions.

FIN623 Taxation Management - Question: Dear Sir, As u replied of my question, "It depends whether the registration of the land has been done as residential, agricultural, or commercial basis." It means the all persons having 250 sq. yard area will file tax return. Now the question is, as the agriculture income is exempt, than why the person filing the return. A salaried person who's income not fall in tax liability but having area of 250 sq.yard what will be condition of return filing.

Instructor's Reply: