DTX5014/TAXATION 1 TRI 2,2019/2020

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TUTORIAL 3
Question 1
Mr Nick, sole proprietor of a laundry service with accounting year ended 31 December prepared
the following sets of accounts:
Accounting Date Adjusted income
RM
1 January to 31 December 2017 13,500
1 January to 31 March 2018 2,900
1 April 2017 to 31 March 2019 15,000
1 April 2018 to 31 December 2019 7500

Required:
Determine the basis periods and the adjusted income for the years of assessment 2017, 2018 &
2019 in respect of above business.

Question 2
Y and Z Sdn. Bhd. manufactures toys and trades in shoes. In YA 2019, the relevant information
provided is as follows:
Adjusted Income Capital allowances
RM RM
Business 1 – manufacturing 10,000 12,000
Business 2 – trading 7,000 5,000

Required:
Compute the aggregate statutory income of Y and Z Sdn Bhd for YA 2019.

Question 3
The following information was submitted by Magenta Sdn Bhd:

Year Ended Year Ended

(30.6.18) (30.6.19)
RM RM
Business A:
Adjusted income / (loss) (10,000) 5,000
Balancing charge 6,000 -
Capital allowances 4,000 1,000

NDH 1
DTX5014/TAXATION 1 TRI 2,2019/2020
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Business B:
Gross Income 35,000 38,000
Expenditure (Note 1) 34,500 55,000
Capital allowances 7,000 2,000
Capital allowances brought forward (YA2014) 1,500 -
Unabsorbed business loss from previous year 1,200 200

Adjusted rental income 4,000 6,000

Interest (Note 2) 3,200 4,150
Dividends (Exempt) - 1,800
Dividends (net of tax at 25%) 1,350 -
Note 1
Included in the expenditure for the relevant years were the following:

Year Ended Year Ended

(30.6.18) (30.6.19)
RM RM
Specific bad debt provision 2,000 5,000
Depreciation 3,500 4,500
Donations to approved institutions 1,000 500

Note 2
Interest is from Agro Bank (a resident bank) on fixed deposit with a maturity period of 12
months.

Required:
Calculate the aggregate income of the company for the YAs 2018 and 2019 on the basis that the
company makes all necessary claims to maximize its deductions.

Question 4
Octovia Sdn Bhd has been operating as a manufacturer of musical instrument since 2002. The
paid up capital as at 1.9.2018 is RM1.3 million. For the year ended 31.8.2019, the company
submitted the following information:
Year ended 31.8.2019
RM
Business 1 – manufacturing:
Adjusted loss (1,800)
Balancing charge 8,000
Capital allowances – current year 4,800
Unabsorbed capital allowance b/f 1,200

NDH 2
DTX5014/TAXATION 1 TRI 2,2019/2020
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Business 2 – trading:
Gross income 88,000
Expenditure (Note 1) 56,000
Unabsorbed loss b/f (1,400)
Capital allowances – current year 61,000
Balancing allowance 3,000
Rental income 7,000
Interest income 2,500

Note 1
Inclusive of cash donations to approved charitable institutions of RM2,000 and depreciation of
RM7,000)

Required:
Compute the income tax payable for YA2019.

NDH 3