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Revision (CA MCQ)

The document contains 8 multiple choice questions related to capital allowances and tax treatment of business expenses and income in Malaysia. The questions cover topics like industrial building allowance, balancing adjustments, aggregate income calculation, withholding tax deductions, capital allowance eligibility and calculations.

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139 views2 pages

Revision (CA MCQ)

The document contains 8 multiple choice questions related to capital allowances and tax treatment of business expenses and income in Malaysia. The questions cover topics like industrial building allowance, balancing adjustments, aggregate income calculation, withholding tax deductions, capital allowance eligibility and calculations.

Uploaded by

Ee Lynn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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ACCA/ CAT past year questions

MCQ

1. AB Steel Sdn. Bhd (AB Steel) has an accounting year end of 31 December. On 1 March 2012
AB Steel entered into a lease agreement to rent a factory premises for its steel manufacturing
operations for RM10,000 per month. On 1 April 2012 AB Steel incurred additional renovation
costs of RM100,000 for the factory building and the factory premises were used for the
company’s steel manufacturing business immediately thereafter. AB Steel has the relevant
interest in respect of the renovation costs incurred on the factory premises.

What is the industrial building allowance, if any, that can be claimed by AB Steel Sdn Bhd in
respect of the factory building for the year of assessment 2012?

A. Nil
B. RM26,000
C. RM13,000 /
D. RM3,000

2. North Pole Sdn Bhd acquired a second-hand motor vehicle for RM125,000 on 12 June 2009.
The motor vehicle was used by the company’s human resource manager. The company disposed
of the motor vehicle on 18 June 2012 for RM30,000.

What is the sale proceeds amount that will be used to determine the balancing adjustment arising
from the disposal of the second- hand passenger motor vehicle by North Pole Sdn. Bhd?

(Note: You are NOT required to calculate the balancing charge or allowance)

A. RM30,000
B. RM24,000
C. RM12,000 / (30/125 x 50)
D. RM125,000

3. PQR Sdn. Bhd (PQR) had the following sources of income in the year of assessment 2015:
Business 1 Adjusted income RM500,000
Business 2 Adjusted loss RM200,000 – NIL

Rental Adjusted income RM150,000

PQR also had a business loss brought forward of Business 2 from the year of assessment 2014
of RM80,000. 500 – 80 = 420 + 150
What is PQR Sdn. Bhd’s aggregate income for the year of assessment 2015?

A. RM570,000 /
B. RM370,000
C. RM650,000
D. RM450,000

4. Biasa Sdn. Bhd (Biasa) makes up its accounts to 31 December each year. In April 2015, Biasa
received technical services from a non resident person. These technical services were all
rendered in Malaysia. On 20 June 2015, Biasa paid the service provided RM450,000, being the
invoiced amount net of the 10% withholding tax applicable. The withholding tax plus the
penalty for late payment were remitted by Biasa to the Inland Revenue Board in September
2015.
What is the amount of the deduction allowed to Biasa Sdn Bhd in respect of this transaction in
arriving at its adjusted income for the year of assessment 2015?

A. RM505,000
B. RM500,000 /
C. RM450,000
D. RM0

5. Mr. Tee replaced the equipment used in his business at RM30,000. These equipment have
life span less than 2 years. Which of the following statements is a correct statement?
(beneficial owner)

A. RM30,000 is a deductible expense in ascertaining the adjusted income of the business. /


B. 100% capital allowance claimed on RM30,000 in the year incurred.
C. Initial allowance of 20% and annual allowance 14% claimed in the year incurred.
D. No capital allowance claimed because Mr. Tee is an individual.

6. Which of the following is NOT a factor/ factors to consider for a person to claim capital
allowance on asset purchased?

A. The person must be a resident in Malaysia. /


B. The person must be beneficial owner of the asset.
C. The machine must be used in the business.
D. A and B.

7. Bersatu Sdn. Bhd., a manufacturing company located in Shah Alam purchased a new Honda at
RM160,000 for its marketing manager on 15 July 2018. The company closes accounts on 31
December annually.
What is the qualifying capital expenditure of the car purchased and the capital allowance that can be
claimed by Bersatu Sdn. Bhd in the year of assessment 2018?

Qualifying capital expenditure Capital allowance


A. RM160,000 RM64,000
B. RM50,000 RM20,000 /
C. RM100,000 RM40,000
D. RM100,000 RM20,000

8. In 2018, Mr. Gibson Tan purchased a Toyota car at RM145,000 and used it in his business.
However, he disposed the car for RM103,000 in the same year after the car met with an accident.
Compute the capital allowance that Mr. Gibson Tan is entitled to claim in the year of assessment
2018 in respect of the Toyota car.

A. RM20,000 /
B. nil
C. RM29,000
D. RM58,000

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