Tutorial 3 – Basis Period (continue)

Question 1

Richard, an individual joined Thunder Partnership on 1.4.2016. Thunder Partnership, which normally
closes its accounts on 31 December, changed its accounting date to 30 September. The partnership’s
accounts are prepared as follows:

Accounting Period Period

01.01.2015 - 31.12.2015 12 months
01.01.2016 - 30.09.2016 9 months
01.10.2016 - 30.09.2017 12 months
01.10.2017 - 30.09.2018 12 months

Determine the basis periods of the partnership for the partners.

Question 2

Eyeviews Sdn Bhd normally closes its accounts on 31 December each year and changes the accounting
period to 31 May (more than 12 months) in the second year.

Year of Assessment Accounting Period Period

2016 1.1.2016 - 31.12.2016 12 months
Failure year 1.1.2017 - 31.5.2018 17 months
1.6.2018 - 31.5.2019 12 months

Determine the basis periods for the company for YAs 2016 to 2019.

Question 3

Tyson Consulting Sdn Bhd normally closes its accounts on 30 June each year and changes the accounting
period to 30 September (more than 12 months) in the following year.

Year of Assessment Accounting Period Period

2016 1.7.2015 – 30.6.2016 12 months
Failure year 1.7.2016 - 30.9.2017 15 months
1.10.2017 - 30.9.2018 12 months

Determine the basis periods for the company.

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Question 4

Union Jane Ltd is ready to commence business in Malaysia. Name four (4) circumstances where the
choice of accounting year end would not result in overlapping period for income tax purposes.

Question 5

Aries Sdn Bhd's accounts are prepared to 31 October each year. The company management made a
decision to change its normal accounting year end to 31 January. As a result of this change in accounting
year end, the accounts are prepared for a period of 15 months from 1 November 2017 to 31 January
2019 and thereafter to 31 January for each subsequent year. Determine the basis periods, based on the
above decision for YA 2017 to YA 2019.

Question 6

XYZ Sdn Bhd's accounting period ends on 30 June each year. In the basis year 2016, the management of
the company changes its accounting period to 31 March 2017 and thereafter. The following are the
accounting periods and adjusted income before and after the change.

Accounting Period Adjusted Income

RM
01.07.2014 – 30.06.2015 15,000
01.07.2015 – 31.03.2017 42,000
01.04.2017 – 31.03.2018 21,000

Determine the basis periods and adjusted income for the YAs 2015 to 2018.

Question 7

Mr. Taurus, the sole proprietor of a car wash, prepared the following sets of accounts:

Accounting date Adjusted income

(RM)
Year ended 31 December 2016 14,000
1 January to 31 March 2017 3,000
Year ended 31 March 2018 16,000
Year ended 31 March 2019 20,000

Determine the basis periods and the adjusted income for the YAs 2016, 2017 and 2018 in respect of the
above business.