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SavvyShopper- wrote: »I will try and make it simple for you:
I buy a tv for £100, I pay £50 cash and a £50 coupon, I sell it for £75 cash. I have made a loss of £25
And I will tell you, in a more polite and less patronising way, your correct! But by being correct, your also proving my point!
If, as a business, you start with £50 cash and a £50 voucher, your business has a net worth of £100. By buying a £100 Tv with this, you now have stock of £100, so you have made neither a profit nor a loss.
By selling the TV for £75, the business now generated an extra £25 in cash, but has lost £25 in assets, reducing the value of the business to £75.
However, in a case using the APG's (using no ones in particular) lets do the same example.
If I have the same £50 cash, but I don't have a voucher (not bought ought yet), and spend the £50 (exactly, for ease). I know have £50 in stock, no increase in value. However, I get an APG for £45 (ease of numbers), my business now has £50 stock and a £45 asset of the APG. My business is now worth £95. I have made a profit.
If I go and buy another £45 of stock with the APG, but mess up the shop and do not get another APG.
My business now has £95 of stock, I have still made a profit of £45.
If I now sell £50 of the stock to repay the £50 cash I had at the start, I am now left with £50 cash and £45 stock.
I have still made £45 profit.
Now, at this point, I then give my 8 daughters a bottle of Poo and Conditioner each, £2.50 per bottle, £40 of stock, this is essentially written of as far as the Tax man is concerned because I am using the stock for personal use.
But I still have £5 of stock left. This is still profit in the business.
I sell these to my neighbour in ten months as I need to empty my loft out to build into it as my 8 daughters want a room each.
My business made a profit of £5 from this scenario, as the final 2 bottle of poo+ditioner where not for personal use.
I therefore need to declare an profit/income of £5 for this venture as I work elswhere earn more than my personal allowance.
If Henlans had vouchers in his hand worth £7500 before he started buying his stock from Sada, then no problems, no profit, he is just buying and selling items to convert from one cash from to another.
However, because he has accumulated these along with the purchases these are seen as assets of the business, just like the stock, so are included in the net worth of the business.
So if Henlans was holding any APG's when he completed his financial period, these should also be included as assets even though he has not spent them.
You have to remember that a business can make a profit without generating cash, and can lose money whilst making lots of cash.
Cashflow issues are the biggest reason why businesses fail. You can have a very profitable business, but if it does not generate cash then it is destined to fail.
If you would like to know more about this, by all means contact the Inland Revenue, a Chartered Accountant or go to the library and borrow a book on understanding accounts.
Or, like me, you could get a business degree and have 5+ years experience of working within a business finance environment analysing financial accounts.0 -
Most fish are not 'bred for the table' either.
Which I believe is the way the Japanese look at it; dolphin, whale, cod, haddock - what's the difference?
Fish lay eggs so one fish can have millions of offspring in one year. Whales and Dolphins are mammals which give birth to live young after long gestation periods (Just like Humans) so it takes much longer for these species to regenerate their numbers if they do drop more suddenly than nature intended.
And that is before you get onto the intelligence and mercury poisoning arguments.0 -
French_Knickers wrote: »In a word, yes!
But in practice its unlikely for the same reason the case was conveniently dropped for you. It'd be very bad publicity and even for 8 grands worth of stuff, asda ain't gonna bother.
On the flip side of that, it might be prudent now to use real id's.....but perhaps help out 'friends and neighbours' gain a bargain too so to speak, then you don't fall foul of the 'per household' thing.
Just my tuppenth worth anyway.
By the way I don't think it excludes using other peoples vouchers but will stand corrected if ts in the terms as I can't be bothered to go read em!
Can't see anything saying you can't use other peoples vouchersMake it idiot proof and someone will make a better idiot.
Redundancy date 31/12/12
:jNew Job started 18/02/13 :j0 -
hi all, been popping in now and then over last wk but never caught up so jumped to the end to say hello before everyone goes to bed - if the bar is still open can i have a dry white pls..
still missing my lil chicken but it was the right time so we are looking bk at pics with fond memories - gone but not forgotten my lil boy x0 -
and on a lighter note had to have some toast and lurpak - starvingWhen The Fun Stops Stop0
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I found this interesting..
@ http://www.housepricecrash.co.uk/forum/index.php?showtopic=183182
Any truth over this?
Probably, but there are too many loopholes, the lawyers would have a field day, as would the press. I don't think you be doing porridge anytime soon. Maybe making some 32p porridge though....0 -
And I will tell you, in a more polite and less patronising way, your correct! But by being correct, your also proving my point!
If, as a business, you start with £50 cash and a £50 voucher, your business has a net worth of £100. By buying a £100 Tv with this, you now have stock of £100, so you have made neither a profit nor a loss.
By selling the TV for £75, the business now generated an extra £25 in cash, but has lost £25 in assets, reducing the value of the business to £75.
However, in a case using the APG's (using no ones in particular) lets do the same example.
If I have the same £50 cash, but I don't have a voucher (not bought ought yet), and spend the £50 (exactly, for ease). I know have £50 in stock, no increase in value. However, I get an APG for £45 (ease of numbers), my business now has £50 stock and a £45 asset of the APG. My business is now worth £95. I have made a profit.
If I go and buy another £45 of stock with the APG, but mess up the shop and do not get another APG.
My business now has £95 of stock, I have still made a profit of £45.
If I now sell £50 of the stock to repay the £50 cash I had at the start, I am now left with £50 cash and £45 stock.
I have still made £45 profit.
Now, at this point, I then give my 8 daughters a bottle of Poo and Conditioner each, £2.50 per bottle, £40 of stock, this is essentially written of as far as the Tax man is concerned because I am using the stock for personal use.
But I still have £5 of stock left. This is still profit in the business.
I sell these to my neighbour in ten months as I need to empty my loft out to build into it as my 8 daughters want a room each.
My business made a profit of £5 from this scenario, as the final 2 bottle of poo+ditioner where not for personal use.
I therefore need to declare an profit/income of £5 for this venture as I work elswhere earn more than my personal allowance.
If Henlans had vouchers in his hand worth £7500 before he started buying his stock from Sada, then no problems, no profit, he is just buying and selling items to convert from one cash from to another.
However, because he has accumulated these along with the purchases these are seen as assets of the business, just like the stock, so are included in the net worth of the business.
So if Henlans was holding any APG's when he completed his financial period, these should also be included as assets even though he has not spent them.
You have to remember that a business can make a profit without generating cash, and can lose money whilst making lots of cash.
Cashflow issues are the biggest reason why businesses fail. You can have a very profitable business, but if it does not generate cash then it is destined to fail.
If you would like to know more about this, by all means contact the Inland Revenue, a Chartered Accountant or go to the library and borrow a book on understanding accounts.
Or, like me, you could get a business degree and have 5+ years experience of working within a business finance environment analysing financial accounts.
Sorry but is it not about time we left this and moved on!
Its easy to pick on some body all night,but it seems to verge on bullying:p0 -
skinandblister1 wrote: »hi all, been popping in now and then over last wk but never caught up so jumped to the end to say hello before everyone goes to bed - if the bar is still open can i have a dry white pls..
still missing my lil chicken but it was the right time so we are looking bk at pics with fond memories - gone but not forgotten my lil boy xWhen The Fun Stops Stop0 -
Fish lay eggs so one fish can have millions of offspring in one year. Whales and Dolphins are mammals which give birth to live young after long gestation periods (Just like Humans) so it takes much longer for these species to regenerate their numbers if they do drop more suddenly than nature intended.
And that is before you get onto the intelligence and mercury poisoning arguments.
Too right. I forgot to add the sustainability argument to my post. Totally on the money as always.
I honestly like your posts, you speak a lot of sense amongst the disarray on here.Gwrys yn Kernow! :j0 -
Love your smilies!
To be fair I doubt it. Sada have taken it on the chin from what I've read. I really don't think you've hurt them too much. Even £8500 is a drop in the proverbial ocean to walmart. You've done your interview, if I'm wrong and they do string you up, let us know!! :rotfl::rotfl::D:D:)
Far from hurt them they got free national advertising out of it0
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