Gagah Sdn. Bhd. (Gagah) was incorporated on 1 January 2020 with an authorised and issued share...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Gagah Sdn. Bhd. (Gagah) was incorporated on 1 January 2020 with an authorised and issued share capital of RM 1 milion. The company trades consumer goods and has a financial year end of 31 December. It began operations on 1 April 2020. The statement of profit or loss for Gagah for the financial year ended 31 December 2020 is given as follows: Note RM RM 200,000 (105,000) 95,000 Revenue Les: Cost of sales 1 Gross profit Less: Expenses Entertainment expenses Pre-commencement expenses Salaries and wages Foreign exchange loss Provision for doubtful debts Penalty Profit before tax 16,500 11,500 23,000 5,800 8,600 3,700 (69,100) 25,900 Notes: 1. Cost of sales includes depreciation of equipment of RM 5,000. 2. Entertainment expenses include food and drinks for new product launch RM 4,000, promotional samples of RM 4,500 and entertaining clients at restaurants for RM 8,000. The clients were entertained with the presence of Gagah's employees. 3. The pre-commencement expenses incurred up to 31 March 2020 comprised of: Salaries and employees' provident fund (EPF) related expenses RM 10,500 Incorporation expenses (registration of company) RM1,000 4. Salaries and wages include: Salaries of directors RM 20,000 EPF for directors RM 3,000 5. The foreign exchange loss is in regards to losses realised on trade payables. 6. The provisions are made up of general provisions for trade debtors RM 4,000 and specific provisions for trade debtors RM 4,600. 7. The penalty is made up of a fine for not adhering to local council's regulations RM 1,700 and a fine by the Inland Revenue of RM 2,000. Required: Compute the chargeable income for Gagah Sdn Bhd for the YA 2020. 2345 67 Gagah Sdn. Bhd. (Gagah) was incorporated on 1 January 2020 with an authorised and issued share capital of RM 1 milion. The company trades consumer goods and has a financial year end of 31 December. It began operations on 1 April 2020. The statement of profit or loss for Gagah for the financial year ended 31 December 2020 is given as follows: Note RM RM 200,000 (105,000) 95,000 Revenue Les: Cost of sales 1 Gross profit Less: Expenses Entertainment expenses Pre-commencement expenses Salaries and wages Foreign exchange loss Provision for doubtful debts Penalty Profit before tax 16,500 11,500 23,000 5,800 8,600 3,700 (69,100) 25,900 Notes: 1. Cost of sales includes depreciation of equipment of RM 5,000. 2. Entertainment expenses include food and drinks for new product launch RM 4,000, promotional samples of RM 4,500 and entertaining clients at restaurants for RM 8,000. The clients were entertained with the presence of Gagah's employees. 3. The pre-commencement expenses incurred up to 31 March 2020 comprised of: Salaries and employees' provident fund (EPF) related expenses RM 10,500 Incorporation expenses (registration of company) RM1,000 4. Salaries and wages include: Salaries of directors RM 20,000 EPF for directors RM 3,000 5. The foreign exchange loss is in regards to losses realised on trade payables. 6. The provisions are made up of general provisions for trade debtors RM 4,000 and specific provisions for trade debtors RM 4,600. 7. The penalty is made up of a fine for not adhering to local council's regulations RM 1,700 and a fine by the Inland Revenue of RM 2,000. Required: Compute the chargeable income for Gagah Sdn Bhd for the YA 2020. 2345 67
Expert Answer:
Answer rating: 100% (QA)
Computation of Income for Gagah Sdn for the year 2020 Note RM RM Revenue 200000 Less Cost of Sales 1 ... View the full answer
Related Book For
Accounting For Cambridge International AS And A Level
ISBN: 9780198399711
1st Edition
Authors: Jacqueline Halls Bryan, Peter Hailstone
Posted Date:
Students also viewed these accounting questions
-
A company bought a machine on 1 January 2020 for RM170,000. It is expected to last for 10 years and then be sold for scrap for RM10,000. Usage over the next 10 years is expected to be: Year...
-
Giraffe Ltd has a financial year end of 31 December. On 1 July 2011, Giraffe issued 5-year, 3% per annum, convertible bonds with face value of $200,000 at par. If issued on the same date, similar...
-
Sigatoka Ltd acquired all issued share capital of Nadi Ltd on 1 July2011 for a cash payment of $885,000. Nadi Ltd is the only subsidiary of Sigatoka Ltd. The share capital and reserves of Nadi Ltd at...
-
Show that is one-to-one and find f(x) = J2 1 + 1 dt
-
Which of the following pairs of events would seem to be mutually exclusive? (Without more complete information, it may be impossible to make a definite judgment, but use your instincts and make a...
-
How should the committee analyze the purchasing department at GLU? Write a memo to Joan summarizing the results of the analysis.
-
What are the factors that shape software modeling?
-
The following situations suggest a strength or a weakness in e-commerce internal controls. a. Netproducts sells merchandise over the Internet. Customers input their credit card information for...
-
Calculate the predetermined over head rate assuring sandhill company estimates total manufacturing overhead costs of 1 0 0 8 0 0 0.
-
Solve the following modifications of the capital budgeting model in Figure 6.5. (Solve each part independently of the others.) a. Suppose that at most two of projects 3, 5, and 6 can be selected. b....
-
Roche developed a treatment for a rare form of depression that kept patients feeling fine and kept them functioning normally. Sufferers greatly preferred this treatment over alternatives that would...
-
What are the main steps in the problem-solving procedure suggested in this chapter?
-
You are working on an exhibit of the atom at a science museum. You want the exhibit to have a model of the atom in which the nucleus is big enough for visitors to see, about \(500 \mathrm{~mm}\) in...
-
The speed of light is \(2.9979 \times 10^{8} \mathrm{~m} / \mathrm{s}\). Convert this speed to miles per second, inches per nanosecond, and kilometers per hour.
-
Does it make any difference whether you multiply or divide by a conversion factor? Explain.
-
The equation for the area of a circle from two sources is given as A = r2 and A = d2/2. Can unit analysis tell you which is correct? Explain.
-
You have been hired as a consultant by senior management at a large financial services company. Management has worked through the strategic management process in terms of formulating its strategies....
-
Anna, a high school counselor, devised a program that integrates classroom learning with vocational training to help adolescents at risk for school dropouts stay in school and transition to work...
-
Tom, Dick and Harry were in partnership, sharing profits and losses in the ratio 3:2:1, respectively. Business profits have been falling consistently over the past few years and the partners have...
-
AB plc has an authorised share capital of 50,000 ordinary shares of $0.50 each. The issued share capital is $100,000. The directors declare a dividend of $0.15 per ordinary share. What is the total...
-
A firm has calculated the following accounting ratios for the year ended 30 June. What could explain the changes in the percentages? A. A fall in interest payments was equal to an increase in...
-
Consider the following observations: a. Fit the nonlinear regression model \[ y=\theta_{1} e^{\theta_{2} x}+\varepsilon \] to these data. Discuss how you obtained the starting values. b. Test for...
-
For the models shown below, determine whether it is a linear model, an intrinsically linear model, or a nonlinear model. If the model is intrinsically linear, show how it can be linearized by a...
-
Sketch the expectation function for the logistic growth model (12.34) for \(\theta_{1}=1, \theta_{3}=1\), and values of \(\theta_{2}=1,4,8\), respectively. Overlay these plots on the same \(x-y\)...
Study smarter with the SolutionInn App