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Exercise Business Income

The document provides the Statement of Profit or Loss for Dullah Trading for the financial year ending December 31, 2023, showing a net profit of RM250,000. It details sales, costs, gross profit, other income, and various expenses, including remuneration and maintenance costs. Additionally, it includes notes on personal use of goods, types of income, and specific expenses that require adjustments for the statutory business income computation for the year assessment 2023.

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Izzah Izzati
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21 views2 pages

Exercise Business Income

The document provides the Statement of Profit or Loss for Dullah Trading for the financial year ending December 31, 2023, showing a net profit of RM250,000. It details sales, costs, gross profit, other income, and various expenses, including remuneration and maintenance costs. Additionally, it includes notes on personal use of goods, types of income, and specific expenses that require adjustments for the statutory business income computation for the year assessment 2023.

Uploaded by

Izzah Izzati
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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Exercise Business Income

Abdullah owned a business, Dullah Trading. The business closes its accounts on 31 December
annually. The following is the Statement of Profit or Loss for the financial year ended 31
December 2023:

Notes RM RM
Sales 778,600
Less: Cost of sales 1 (203,500)
Gross Profit 575,100
Add: Other income 2 7,600
Less: Expenses
Depreciation 35,000
Remunerations 3 233,600
Repair and maintenance 4 15,000
Fees and contributions 5 20,500
Bad debts 6 7,600
Other expenses 7 21,000 (332,700)
Net Profit 250,000

Notes:

1. Abdullah took goods costing RM3,400 for personal use. The market value of the goods
was RM6,000. This transaction had been recorded in the accounting books of Dullah
Trading.

2. Other income consist of:


RM
Interest income from fixed deposit in Maybank 3,000
Dividend income (single tier) 1,400
Rental income 3,200

3. Remunerations comprise of:


RM
Salary and bonus for Abdullah 80,000
Employees' salary and bonus
(including RM30,000 for disabled employee) 120,000
EPF for Abdullah 9,600
EPF for employees 24,000

4. Repair and maintenance expenses consist of:


RM
Renovation of Abdullah's house 6,000
Replacement of broken business premise tiles 4,000
Installation of two (2) units air conditioners in business premise 3,000
Maintenance of business delivery van 2,000
5. Fees and contributions comprise of:
RM
Zakat 7,000
Cash donation to an old folk center (an approved institution) 8,000
Cash donation to a State Library - s 34(6)(g) 3,500
Entrance fee to a trade association 500
Annual fee to a trade association 1,500

6. Bad debts comprise of:


RM
General provision of doubtful debts 4,000
Specific provision of doubtful debts 1,300
Trade bad debts written off 800
Amount owed by ex-employee written off 1,500

7. Other expenses comprise of:


RM
Staff medical expenses 4,500
Annual leave passage within Malaysia 7,600
Loss on disposal of business furniture 2,400
Water and electricity of business premise 6,500

8. The current year balancing charges and capital allowance were RM8.000 and RM
15,000respectively.

Required:

Compute the statutory business income of Dullah Trading for the year assessment 2023.
Indicate NIL for any item that does not require any adjustment. (17 marks)

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