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Saville Sdn. Bhd. is a resident manufacturing company with a share capital of RM1
million. The company commenced trading on 1 January 2019 and closed it accounts on
31 December each year. Below is Saville Sdn. Bhd. Profit & Loss Accounts for the year
ended 2020.
Saville Sdn. Bhd.
Profit & Loss Accounts for the year ended 31 December 2020
Note RM'000 RM'000
Sales
500
Cost of Sales
1
(150)
Gross Profit
350
Other Income
2
40
390
Salary
Sales & Marketing
Administration
Depreciation
Bad debts
Audit fee
Trade subscription
Donation
Interest expense
Profit before tax
345
3
679
6
8
9
10
120
60
50
25
12
6
2
2
3
(280)
110 Notes to the Accounts:
1.
The company made provisions for slow moving inventory for
RM10,0 and reflected in the cost of sales accounts as follow:
RM
8,000
Opening balance
Provision for the year
10,000
Provision written off
(2,000)
Closing balance
16,000
Other Income.
1.
11.
Interest income from term deposit was RM8,000.
Interest income from investment link account was
RM8,000.
111.
Rental income for the year was RM24,000.
Salary.
The company made a 13% contribution to all staff which was
included in the salary expenses. Included in the salary expense is a
SOCSO certified disable staff who was paid salary and bonus of
RM18,000 and RM1,500 respectively.
4.
Sales & Marketing.
The company incurred a market research expense on possibility to
penetrate foreign market for RM10,000. A feasibility study for the
same purpose was also conducted at a cost of RM5,000. The
company also incurred specific advertisement expenses of RM10,000
to build its branding.
Administration.
Repairs and maintenance expenses for the year accumulated to
RM8,000. During the the
year company also developed the company
website for RM6,000.
2.
3. 6.
Bad debts.
Bad debt written off for the year was supported with the necessary
documentation evidence.
7.
Audit fees paid was in respect of FY 2019 audit expense.
8.
Trade subscription was made with regards to the manufacturing
association Saville S/B belongs to.
9.
Donation was made to an approved institution.
10. Interest expense was related to loans taken for dividend payment.
11. Capital allowance computed for YA 2020 was RM3,000.
Required:
Compute the Chargeable Income for Saville Sdn. Bhd. for YA 2020 (show all
workings).
[Total: 25 Marks] Saville Sdn. Bhd. is a resident manufacturing company with a share capital of RM1
million. The company commenced trading on 1 January 2019 and closed it accounts on
31 December each year. Below is Saville Sdn. Bhd. Profit & Loss Accounts for the year
ended 2020.
Saville Sdn. Bhd.
Profit & Loss Accounts for the year ended 31 December 2020
Note RM'000 RM'000
Sales
500
Cost of Sales
1
(150)
Gross Profit
350
Other Income
2
40
390
Salary
Sales & Marketing
Administration
Depreciation
Bad debts
Audit fee
Trade subscription
Donation
Interest expense
Profit before tax
345
3
679
6
8
9
10
120
60
50
25
12
6
2
2
3
(280)
110 Notes to the Accounts:
1.
The company made provisions for slow moving inventory for
RM10,0 and reflected in the cost of sales accounts as follow:
RM
8,000
Opening balance
Provision for the year
10,000
Provision written off
(2,000)
Closing balance
16,000
Other Income.
1.
11.
Interest income from term deposit was RM8,000.
Interest income from investment link account was
RM8,000.
111.
Rental income for the year was RM24,000.
Salary.
The company made a 13% contribution to all staff which was
included in the salary expenses. Included in the salary expense is a
SOCSO certified disable staff who was paid salary and bonus of
RM18,000 and RM1,500 respectively.
4.
Sales & Marketing.
The company incurred a market research expense on possibility to
penetrate foreign market for RM10,000. A feasibility study for the
same purpose was also conducted at a cost of RM5,000. The
company also incurred specific advertisement expenses of RM10,000
to build its branding.
Administration.
Repairs and maintenance expenses for the year accumulated to
RM8,000. During the the
year company also developed the company
website for RM6,000.
2.
3. 6.
Bad debts.
Bad debt written off for the year was supported with the necessary
documentation evidence.
7.
Audit fees paid was in respect of FY 2019 audit expense.
8.
Trade subscription was made with regards to the manufacturing
association Saville S/B belongs to.
9.
Donation was made to an approved institution.
10. Interest expense was related to loans taken for dividend payment.
11. Capital allowance computed for YA 2020 was RM3,000.
Required:
Compute the Chargeable Income for Saville Sdn. Bhd. for YA 2020 (show all
workings).
[Total: 25 Marks] Saville Sdn. Bhd. is a resident manufacturing company with a share capital of RM1
million. The company commenced trading on 1 January 2019 and closed it accounts on
31 December each year. Below is Saville Sdn. Bhd. Profit & Loss Accounts for the year
ended 2020.
Saville Sdn. Bhd.
Profit & Loss Accounts for the year ended 31 December 2020
Note RM'000 RM'000
Sales
500
Cost of Sales
1
(150)
Gross Profit
350
Other Income
2
40
390
Salary
Sales & Marketing
Administration
Depreciation
Bad debts
Audit fee
Trade subscription
Donation
Interest expense
Profit before tax
345
3
679
6
8
9
10
120
60
50
25
12
6
2
2
3
(280)
110 Notes to the Accounts:
1.
The company made provisions for slow moving inventory for
RM10,0 and reflected in the cost of sales accounts as follow:
RM
8,000
Opening balance
Provision for the year
10,000
Provision written off
(2,000)
Closing balance
16,000
Other Income.
1.
11.
Interest income from term deposit was RM8,000.
Interest income from investment link account was
RM8,000.
111.
Rental income for the year was RM24,000.
Salary.
The company made a 13% contribution to all staff which was
included in the salary expenses. Included in the salary expense is a
SOCSO certified disable staff who was paid salary and bonus of
RM18,000 and RM1,500 respectively.
4.
Sales & Marketing.
The company incurred a market research expense on possibility to
penetrate foreign market for RM10,000. A feasibility study for the
same purpose was also conducted at a cost of RM5,000. The
company also incurred specific advertisement expenses of RM10,000
to build its branding.
Administration.
Repairs and maintenance expenses for the year accumulated to
RM8,000. During the the
year company also developed the company
website for RM6,000.
2.
3. 6.
Bad debts.
Bad debt written off for the year was supported with the necessary
documentation evidence.
7.
Audit fees paid was in respect of FY 2019 audit expense.
8.
Trade subscription was made with regards to the manufacturing
association Saville S/B belongs to.
9.
Donation was made to an approved institution.
10. Interest expense was related to loans taken for dividend payment.
11. Capital allowance computed for YA 2020 was RM3,000.
Required:
Compute the Chargeable Income for Saville Sdn. Bhd. for YA 2020 (show all
workings).
[Total: 25 Marks]
