3. (30 points) A i. Whatis business income? (2 points) : ii, State the THREE (3) examples of income for business. (3 points) ise that sells vehicle's spare part. Shamsul operates a sole torship business, Sham Enterpris p proprietorship busit Pl sa Delcber woth The following is the Statement of Comprehensive Income for the year ended 3 Notes RM RM Sales revenue 350,000 Less: Cost of goods sold 1 (480,000) 170,000 Gross Profit er Income ‘Giudend: 2 50,000 220,000 e@ 3 8,400 4 64,184 5 3,000, 6 27,000 7 14,100 8 11,200 7,600 9 3,500 10 4,000 4 14,100 (187,084) (ReERFOAE) 62,916 Notes: 1. (Cost of goods sold Vehicle part costing RM3,000 taken by Shamsul for his son's use is not recorded. a The marketable value of the vehicle part is RM4,000. 2 =: Single-tier dividend received from Nibong Sdn. Bhd RM50,000 3. Giiitiestis Shop's water, electricity and telephone bills (it is agreed that 1/4 for personal use) 4 2019/A/PTX1033,CONFIDENTIAL Salary (RM) Bonus (RM) PF (RM) ‘Shamsul 24,000 4,000 3,640 , Marwan ( employee) 14,400 2,400 2,184 Jalal (employee) 9,600 2,400 1,560 5. Quarter of the (HBBIGEINERBEHEES were used for Shamsul's daughter dental care treatment. Repair of business machine & equipment RM 22,000 Installation of air-conditioner unit at the upper level RM 5,000 © > @ersnmem Vacation trip for Shamsul's family RM 10,600 Annual dinner for employee RM 3,500 ° GR Shamsul's personal tax & road tax RM 4,200 = Road tax for business's vehicle RM 7,000 9. @BRahy Late payment of personal tax payable RM 2,800 Traffic summons RM 700 10, 63GB e General bad debt RM 800 Specific bad debt RM 3,200 11. Petrol & Toll for official d RM 10,100 Air ticket to Moscow for personal matters RM 4,000 12. Capital allowance is RM8,000 Required: Compute the Statutory Business Income of @HAMBE! for the year of assessment 2018. (Indicate ‘nil’ or "in the appropriate column for any itervs that does not require any adjustment) 5 2019/A/PTX1033(30 points) a i. Define the allowable business expenses. (2 points) |i. List THREE (3) examples of allowable business expenses. (3 points) b. ‘Asha, operates a sole proprietorship business, Asha Blue Moon Fashion House that sells. plus size Clothing. The following is the Statement of Comprehensive Income for the year ended 31* December 2019: Notes RM RM Sales revenue Less: Cost of goods sold 9 Gross Profit (Gaon dspoal of bung ss: Expen: 1 a 3 4 5 ation 6 7 184,424) ~ Tetra 425,576 ‘ Notes: 4. Since January 2019, the upper level of (Side. THETTEN! for the upper level 2. Utlities bills ‘Shop's G2ISRNEISCHICNVNARGNIPRONENDIISD(t is agreed that 3/4 was business usage) 4 2019/B/PTX1033CONFIDENTIAL Salary(RM) Bonus (RM) —_EPF (RM) Asha 36,000 6,000 5,460 Umair (employee) 18,600 2,600 2,366 Nufayl (disabled employee) 40,800 1,800 1,638 4. One third of the (ISGIGBIIERBEREES were used for Asha’s family care treatment 5. Gipsinren Annual dinner for staffs RM 7,000 Refreshment for prospective customers RM 8,000 6. Cea € Late renewal of business license RM 2,500 Understatement of tax RM 800 7. GREBIS Trade bad debt RM 10,000 General bad debt RM 1,000 8. Capital allowance as follows: Capital Allowance RM 11,000 Balancing charge RM 53,000 Required: CT Compute the Statutory Business Income offABhi for the year of assessment 2019. (Indicate ‘nil’ or ‘chin the appropriate column for any item/s that does not require any adjustment). (25 points) 6 2019/BIPTX1033CONFIDENTI 3. (30 points) a. List FIVE (8) items considered as non-allowable expenses. (5 points) b. Halimi owned a music instrument's shop in Kota Bharu. The following is the Statement of ‘Comprehensive Income for the year ended 31 December 2019: Notes = RM Sales revenue Less: Cost of goods sold 1 Gross Profit 210,000 ‘Add: Other Income Interest on fixed deposit 70,000 Less: Expenses Rental shop Water & electricity Salaries, Bonus & EPF Staff Medical Repair Entertainment Advertisement Depreciation Travelling 7 Net Profit aon Not 1. Cost of goods sold Included in cost of goods sold is music instrument costing RM 3,000 taken by Halimi for his family's use. The marketable value of the music instrument is RM 5,000. 2. Since July 2019, the upper level of the double-storey shop was used for personal resident The rent for the upper level is RM 300 per month. 3. Three quarter of water & electricity is for business use. 4, Salaries, Bonus & EPF Salary(RM) Bonus (RM) —_EPF (RM) Halimi 33,600 2,800 4,732 Atila (employee) 13,200 1,100 1,859 Atiya (disabled employee) 9,600 800 1,362 5. Repair Repair of business fixed assets RM 11,200 Installation of air-conditioner unit at the upper level RM 9,300 4 2019/CIPTX1033,CONFIDENTIAL 6. Entertainment Vacation trip for Halimi family RM 7,000 Annual dinner for staff RM 10,000 Hittea for suppliers RM4,200 7. Travelling Air ticket to Singapore for staff training RM 17,000 8. Capital allowance is RM9,000 Required: Compute the Statutory Business Income of Halim for the year of assessment 2019. (Indicate ‘nil or “in the appropriate column for any iterm/s that does not require any adjustment). (25 points) 5 2019/CIPTX1033