QUIZ (5%)

BUSINESS INCOME
Suggested Solution
RM
Net profit
Less: non business income
Dividend
Adjusted rental
Add: Business income ( Item is not included yet )
Bad debt recovered
Add: Non-allowable expenses
Birthday present
Depreciation
Salary and bonus (Zaki)
Employees
Disable Employees
Entertainment Hari Raya
Entertainment existing client
Employees Transportation
Leave Passage for Zaki
Repair of wooden door
Repair of leaking roof
Business Licence
Business Registration Logo
Secretarial Services
Insurance for companys vehicle
Insurance for the factory
Purchase of new sign board
Utilities-deposit
TQM course for Zaki
Donation (public hospital & flood )
Financial payment (11,800 6,200)
Purchase of new fax machine
Repair photostats machine
Bad debt Written Of
Provision for bad debt - general
1

900
4,500

RM
33,990

(5,400)
500

2,000
4,800
28,000
Nil
Nil
1,500
Nil
Nil
800
1,100
Nil
Nil
1,400
Nil
Nil
Nil
2,200
1,500
Nil
5,000
5,600
1,750
Nil
Nil
1,250

Provision for bad debt - specific

EFP for Zaki
EPF for employees [RM9,200 (0.19 x RM 46,000)]
Less: Double deduction
Disable employee
Export insurance
Training
Adjusted business income
Add: Balancing charge
Less: Capital allowance
Statutory business income
Less: Unabsorbed business loss
Add: Other income
Dividend
Rental (4,500 + 450)
Aggregate income
Less: Donation to Approved Institution
Total income

Nil
3,360
460
11,800
1,800
3,400

Nil
4,950

60,720

(17,000)
72,810
1,820
(1,920)
72,710
(28,000)

4,950
49,660
(3,500)
46,160