TUTORIAL WEEK 8:

CAPITAL ALLOWANCES
Tutorial Group 2
Thursday (12-2pm)
LECTURER: DR NOOR SHAROJA BINTI SAPIEI
NUR ALYA MOHAMAD YUSOF CEA 140097
NUR SYAHIRAH BINTI ZULKIFLI CEA 140103
ONG TZE SHAN
CEA 140111

QUESTION 5

Requirement (a)
State the residual expenditure of each asset that
were brought forward from the year of
assessment 2014 and the qualifying plant
expenditure for each of the assets acquired
during the year.

Residual expenditure of each asset that were brought forward

from the year of assessment 2014:
Asset

RM

Office Equipment

7, 200

Projector

13,800

Qualifying plant expenditure for assets acquired during 2015:

Asset

RM

Remark

Motor Car

50,000

The actual cost of the motor car is

RM183,050, which is exceeds
RM150,000. The condition is not
fulfilled thus, a qualifying expenditure
is restricted to RM50,000

Computers

45,000

Printer

8,000

Requirement (b)
Calculate the initial allowances and capital
allowances for all business assets for the year of
assessment 2015 and state the residual
expenditure of each asset at the end of the year
of assessment 2015.

Office Equipment
RM
Qualifying Expenditure 2013

RM
12,000

Initial Allowance (20%)

(2,400)

Annual Allowance (10%)

(1,200)

(3,600)

Residual Expenditure Y/A 2013

8,400

Annual Allowance (10%)

(1,200)

Residual Expenditure Y/A 2014

7,200

Annual Allowance (10%)

(1,200)

Residual Expenditure as Y/A 2015

6,000

Motor Car
RM

RM

Cost Incurred

183,050

Qualifying Expenditure Y/A 2015

50,000

Initial Allowance (20%)

(10,000)

Annual Allowance (20%)

(10,000)

Residual Expenditure Y/A 2015

(20,000)
30,000

Computers
RM
Qualifying Expenditure Y/A 2015

45,000

Initial Allowance (20%)

(9,000)

Annual Allowance (40%)

(18,000)

Residual Expenditure Y/A 2015

RM

(27,000)
18,000

Requirement (c)
Calculate the balancing allowance or balancing
charge in respect the assets disposed of in 2015.

Projector
RM
Residual Expenditure Y/A 2015
Disposal Price

13,800
(26,000)

Balancing Charge

12,200

Limited to (RM23,000-RM13,800)

9,200

Since a balancing charge cannot exceed the total capital allowances

given to date RM 9,200, thus, it would be restricted to actual allowance
given prior to disposal which is RM9,200.

Printer
RM
Qualifying Expenditure Y/A 2015

8,000

Initial Allowance (20%)

(1,600)

Annual Allowance*

6,400

Selling Price
Balancing Allowance

(5,500)
900

*Since the Jaya Sdn Bhd is not the owner of the asset at the end of the
basis period, the company cannot claim annual allowance.

THANK YOU.