Class 12 Economics What is Current Account? Chapter 6 Pa

These processes involve paying other countries for products therefore money goes out of the economy. In calculating balance of trade, imports are deducted as they require money to flow out of an economy. Efiling Income Tax Returns is made easy with ClearTax platform.

I greatly enjoyed it because it filled in on some of the attitudes expressed in other of the series’ books. I would like to see more stories which further explain some of the growing changes in attitude of public and clan members over what must be a lengthy time line. As an older adult who grew up reading Heinlein and others of the 1950’s and 1960’s, Lee and Miller are following in their footsteps. With all the philosophical/religious/political/political correctness and other problems in real life, this is an enjoyed respite. Use our AMB calculator to calculate the amount of average balance required to be maintained in your Resident SB / NRE / NRO account.

Unlike the Tomorrow Log, whose main characters I found completely unlikeable, Master Trader Van Deelin, Jethri, and the young dramliza twins held my interest, from the beginning of the read on Saturday night to its close on Sunday afternoon. I had previously read 2 of the Liaden Universe stories covering other characters. This story is an excellent beginning of the whole Liaden series.

The official reserve transactions are seen as the accommodating item in the BoP . Accommodating transactions (termed ‘below the line’ items), on the other hand, are determined by the net consequences of the autonomous items, that is, whether the BoP is in surplus or deficit. It represents a summation of country’s current demand and supply of the claims on foreign currencies and of foreign claims on its currency. The Balance of Payments and Balance of Trade are two confusing concepts for even economics graduates. These terms are connected with international trade accounting.

Get to Know Balance of Trade (BOT)

The employee has been on maternity leave with salary or wage, during the accounting year. No work for all the working days, no payment of full bonus. Bonus can be forfeited under section 9 only with reference to accounting year in which the employee committed fraud, theft, etc. [Himalaya Drug Co. v. P.O., 2nd Addl. [Mahabir Tiles Work v. Union of India, A.I.R. 1968 Ker.

• A credit balance is a difference between the current account balance and the debit balance.
• Export driven economies are known for economic growth and generation of employment.
• The current account is used to record the inflow and the outflow of goods between nations.

There are many countries like the United States of America which is in a trade deficit continuously because of the high amount of exports. The effects of trade balance on the economy does not depend on the trade surplus or trade deficit but a lot of other factors of the countries like trade policies, size of trade imbalance and the duration of positive or negative trade balance. Contract Turnover is the sum of the purchase value and sales value. Trading Turnover or Business Turnover is the absolute profit i.e. sum of positive and negative differences. This turnover is considered to determine the applicability of the tax audit and the applicable ITR form.

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By calculating the balance of trade, a country’s trade surplus or trade deficit is calculated over a specific period of time which can be a month, a quarter or a year. Any person having income from trading in shares and securities should report it as income from business and profession. To determine the applicability of Tax Audit as per the Income Tax Act, we should calculate Trading Turnover for such income.

Balance of Trade India:

If more mobiles are imported and less produced locally, then there will be less local jobs in that sector. Housing.com shall not be liable in any manner for any losses, injury or damage suffered by such person as a result of anyone applying the information in these articles or making any investment decision on the basis of such information , or otherwise. The users should exercise due caution and/or seek independent advice before they make any decision or take any action on the basis of such information or other contents. These articles, the information therein and their other contents are for information purposes only. All views and/or recommendations are those of the concerned author personally and made purely for information purposes. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality.

Provided that where for any how to calculate balance of tradeing year a separate balance-sheet and profit and loss account are prepared and maintained in respect of any. If the stock increases by 20%, its value will increase to INR 120. If securities sell on a cash account, a gain of INR 20 is made. A trading account that buys securities on credit for INR 200 will earn you INR 40 in profit if the price goes up 20% to INR240.

Additionally, in attempts to revive business, import tariffs are often reduced to increase competition thus reviving the economic efficiency of a country. During times of recession, countries often have to import to maintain supply chains and ensure their citizens have the necessary resources. Based on the numerical value of Balance of Trade, it is considered favourable or unfavourable. The reasoning behind the same is that a positive Trade Balance suggests that a country exports more. Export driven economies are known for economic growth and generation of employment.

Balance of trade is an important factor playing into the calculation of the Gross Domestic Product of a country. As part of GDP calculations, exports are added and imports are subtracted from the total. Therefore, greater the trade surplus, greater the GDP of a country.

Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor’s account. A country that has a trade deficit is sending a portion of its currency overseas.

Importance of BOP for a country

I can not afford regular college and for that I joined IGNOU your initiative through this website helps me to prepare for various topics. One request sir can you please publish last year’s old question https://1investing.in/ /out dated test series it will be very helpful although I can’t join a regular test series. If you can’t then also ok, again I am very very Thankful and heavily endebt for your generous help. NRI deposits are calculated under Capital Accounts while Private Remittances are calculated under Current Account. These items are called ‘above the line’ items in the BoP.

BALANCE OF TRADE It is the difference between the value of visible exports and value of visible imports of a country. If the value of visible exports is more than visible imports the country will have a Surplus balance of trade. If the value of visible imports is more than visible exports the country will have an Unfavourable balance of trade. INVISIBLE TRADE Invisible trade involves the import and export of services rather than goods.

3) Balance of trade includes only visible items whereas current account balance includes invisibles also. This includes money invested by residents in real estate, business ventures and foreign direct investments. It monitors changes in foreign ownership of domestic assets and domestic ownership of foreign assets, and analyses whether a country is acquiring more assets or not.

Later, the repurchase of shares happens at a lower price, and the broker will pocket any excess cash. The investor receives the proceeds of the short sale in his margin account when the shares are sold short for the first time. Countries with current account deficits can run into difficulties. If the deficit is large and the economy is not able to attract enough inflows of foreign investment, then their currency reserves will dwindle. The decrease in official reserves is called the overall balance of payments deficit . Explain their importance in the balance of payments.

How to calculate visible export and invisible export? For Commerce 2023 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about How to calculate visible export and invisible export? Covers all topics & solutions for Commerce 2023 Exam.

Balance of trade is an important component of a country’s balance of payments and is an important indicator of the country’s trade. From a balance of international payments point of view, a surplus on the current account would allow a deficit to be run on the capital account. For example, surplus foreign currency can be used to fund investment in assets located overseas. Also, if a country has a current account deficit , it will borrow from abroad. Where for any accounting year, the allocable surplus exceeds the amount of maximum bonus payable to the employees in the establishment under section 11, then, the excess shall, subject to a limit of twenty per cent. A positive balance of trade indicates the country’s trade surplus while a negative balance of trade indicates trade deficit.