BUSINESS INCOME (TAX267 – FEBRUARY 2021)

Computation of Statutory Business Income of Bonda Enterprise for the

YA 2020
RM RM
Net Profit as per SOPL 147,700√
Add: Adjustment-Drawing 1,800 √
149,500
Less: Non-Business-income
Interest income (CIMB bank) 4,500√
Interest income (Customers) 8,900√
Rental income 10,800√ (24,200)
125,300
Add: Non-Allowable Expenses
Remuneration:
Salary, bonus and EPF (Halim) 97,000√
Salary and bonus (normal employees) NIL√
EPF (all employees) 17,615√
44,500-(19% x 141,500 = 26,885)
Fees:
Accounting service NIL√
Fines paid for exceeding speed limit 1,800√
Legal fees for purchase of land 3,500√
Legal fees on recovery of trade debts NIL√
Fees for designing business logo 2,400√
Entertainment expenses:
Gift vouchers to customers NIL√
Annual dinner for employees NIL√
Lunch with suppliers (2,500 x 50%) 1,250√
Family Day with staff and their families NIL√
Donation:
Business Zakat 4,200√
Contribution made to a political party 2,500√
Contribution to an approved Institution:
(Infrastructure for the poor s 34(6)(h)) NIL√
Repair and Maintenance:
Repair of delivery van NIL√
Renovation of business premise 6,800√
Installation of new air conditioner in the premise 2,600√
Repainting of Halim’s house 2,300√
Bad debts:
Net increase in specific provision NIL√
Net increase in general provision 3,200√
Trade bad debts written off NIL√
Travelling expense:
Carriage cost for delivering stock to customer NIL√
Halim’s holiday to Langkawi 3,000√
Water and electricity expenses (80%) NIL√
Water and electricity expenses (20%) 1,460√
Compensation to dismissal an employee NIL√
Depreciation 12,800√ 162,425
287,725
Less: Double deduction
Remuneration of disabled employee (16,200) √
Adjusted Business Income√ 271,525
Less: Capital Allowance (25,000)
Statutory Business Income√ 246,525
(36 √ x ½ mark = 18 marks)