RUBIATUL ADAWIYAH BINTI MOHD ASHARI (264831)

QUESTION 1

(a) 1. IT Equipment (Asset)

CA = 280,000 - ((20% × 280,000) × 3)

280,000 - 168,000
RM112,000

TB = 280,000 - (50% × 280,000)

280,000 - 140,000
RM140,000

The different between CA amount RM112,000 and TB RM140,000 gives rise to

temporary differences of RM28,000. This is Deductible Temporary Differences (DTD)

2 R&D (Intangible Asset)

CA = 25,000
TB = nil

The CA is RM25,000. The TB will be nil as the development expenditure is deductible

when inccured. This is Taxable Temporary Differences (TTD) RM25,000.

3 Interest revenue-bond (Liability)

CA = 12,500
TB = nil

The different temporary differences is RM12,500. This is Taxable Temporary

Differences (TTD).

(b)1. IT Equipment

Deferred Tax Liability = 28,000 × 25%

RM7,000

2 R&D

Deferred Tax Asset = 25,000 × 25%

RM6,250
( c) RM42,000 × 25%
RM10,500

Item Dt Cr
Income Tax 10,500
Current Tax Liability 10,500
 4 Entertainment Expense

CA = 18,000
TB = nil

This is permanent differences

5 Interest Expenses (Liability)

gives rise to CA = 29,200

Differences (DTD) TB = 1/2 × 29,200
14,600

The CA is amount RM29,000 while TB is RM14,600. This is deductible temporar

6 Donation

ture is deductible CA = 5,000

TB = nil

This is permanent differences.

3 Interest Expenses

Deferred Tax Liability = 14,600 × 25%

RM3,650

4 Interest Revenue - Bond

Deferred Tax Asset = 12,500 × 25%

RM3,125
his is deductible temporary differences (DTD).
 QUESTION 2

(a) 1. PPE (Assets)

CA = 249,200
TB = 249,200 - (20% × 356,000)
178,000

The amount of CA is RM249,200 while TB is RM284,800 so, the different between

CA and TB is RM71,200. This is Taxable Temporary Differences (TTD) because CA > TB.

2 R&D (Intangible Asset)

CA = 138,000
TB = nil

The amount of CA is RM138,000 while TB is nil as the development expenditure

is deductible when incurred so, the temporary difference is RM138,000. This is
Taxable Temporary Differences (TTD) because CA > TB.

3 Interest Receivable (Asset)

CA = 107,000
TB = nil

As interest received is taxed on cash basis but the tax base will be nil. This gives rise
a temporary difference of RM107.000. This is Taxable Temporary Differences (TTD).

(b) Total of TTD = 71,200 + 138,000 + 107,000 316,200

Total of DTD = 140,400 +45,300 185,700

TTD 316,200
DTD 185,700
Net TTD 130,500
Tax Rate 24%
Ending Balance DTL 31320
(-) Beginning Balance DTL 8,500
Deferred Tax Expense 22,820

(c) The deferred tax reconized in 2017 to be disclosed in the statement of financial position will be based on 24%.
The amount brought forward will be adjusted for 24% which would be RM2,375. This reduction of RM2,375 is
credited to the income statement of year 2017. It is a change in accounting estimate and the R.E is not adjusted
Net TTD 130,500
Tax Rate (24-22)/24
Ending Balance DTL 10,875
(-) Beginning Balance DTL 8,500
Deferred Tax Expense 2,375
 4 Interest Expense Loan (Liability)

CA = 156,000
TB = 156,000 - (10% × 156,000)
140,400

The CA is RM156,000 while TB is RM15,600 so, the temporary difference is RM1

se CA > TB. This is Deductible Temporary Differences (DTD) because CA > TB

5 Unearned Revenue (Liability)

CA = 45,300
TB = nil

The CA is amount of RM45,300 while TB is nil so, the temporary difference is RM

This is Deductible Temporary Differences (DTD) because CA > TB.

on will be based on 24%.

reduction of RM2,375 is
and the R.E is not adjusted
mporary difference is RM140,400.
use CA > TB

temporary difference is RM45,300.

use CA > TB.
 QUESTION 3

(a) 1 PPE (Assets)

Motor Vehicle = 100,000 - (30% × 100,000)

70,000
Machinery = 120,000 - (25% × 120,000)
90,000
Total TB = 70,000 + 90,000
160,000

CA = 170,000
TB = 160,000

Temporary Different between CA and TB is RM10,000. This is Taxable Temporary

Differences (TTD)

2 R&D (Liability)

CA = 30,000
TB = nil

Temporary difference between CA and TB is RM30,000. This is Taxable Temporary

Differences (TTD)

3 Interest Receivable (Asset)

CA = 8,000
TB = nil

This is permanent differences so, don't have any CA and TB

(b) Total TTD = 10,000 + 30,000 + 18,000

58,000
Total DTD = 16,000

Fatihah Bhd
Statement of Profit or Loss and Other Comprehensive Income
RM
TTD 58,000
DTD 16,000
Net TTD 42,000
Tax Rate 24%
Ending Balance DTL 10080
(-) Beginning Balance DTL 5,000
Deferred Tax Expense 5,080
4 Penalty

CA = 20,500
TB = nil

This is permanent differences so, don't have any difference between CA and TB.

5 Unearned Rent (Liability)

CA = 16,000
TB = nil

Temporary Difference between CA and TB is RM16,000. This is Deductible Temporary

Differences (DTD).

6 Warranties

CA = 18,000
TB = nil

Temporary Differences between CA and TB is RM18,000. This is Taxable Temporary

Differences (TTD)
 QUESTION 4

(a) Item CA TB
1 PPE (Asset) 42,000,000 25,000,000
2 Development Expenditure (Asset) 12,000,000 nil
3 Income Receivable (Asset) 2,000,000 nil
4 Provision for Environment (Asset) 1,000,000 nil
5 Doubtful Debt (Liability) 250,000 nil

(b) Dragon Lord Bhd

Statement of Profit or Loss and Other Comprehensive Income

TTD
DTD
Net TTD
Tax Rate
Ending Balance DTL
(-) Beginning Balance DTL
Deferred Tax Expense

Dragon Lord Bhd

Statement of Financial Position as at 31 December 2018

Non Current Liability

Deferred Tax Liability

Current Liability
Tax Payable
 Temporary Differences TTD/DTD
17,000,000 TTD
12,000,000 TTD
2,000,000 TTD
1,000,000 TTD
250,000 DTD

ensive Income
RM
32,000,000
250,000
31,750,000
24%
7620000
3,300,000
4,320,000

ember 2018
RM

4,320,000

3,300,000