Bonda Enterprise owned by Halim is involved in local distribution of mini egg sponge cupcakes or bahulu cupcakes. The following is the Statement of Profit or Loss for his business for the year ended 31 December 2020. Bonda Enterprise Statement of Profit or Loss for the year ended 31 December 2020 Note Sales 652,000 Less: Cost of goods sold 125.000 Gross Profit 527,000 Add: Other income Interest income 2 13,400 Rental income 10.800 24.200 RM RM 1 3 551,200 4 5 Less: Operating expenses Remuneration Fees Entertainment expenses Donations Repair and maintenance Bad debts Travelling expenses Water and electricity expenses Compensation Depreciation Net Profit 8 9 10 11 12 283,000 15,200 27,200 12,800 15,800 13,100 10,700 7.300 5,600 12,800 (403.500) 147,700 Additional information: 1. Cost of goods sold include: Goods costing RM1,500 taken by Halim as a wedding gift for his cousin. The market value of the goods was RM1,800. 2. Interest income were received from: RM Fixed deposit account at CIMB bank 4,500 Charges on overdue trade accounts 8,900 13,400 3. Rental income: 3. Rental income received from a condominium rented out to Halim's friend. 4. 5. 6. 7. Remuneration comprise: Salary Bonus EPF RM RM RM Halim 57,000 18,000 22,000 Employees 119.000 22.500 44.500 176,000 40.500 66,500 Included in salary and bonus to employees was RM16,200 paid to shop assistant who is disabled. Fees comprise: RM Accounting service 3,200 Fines paid for exceeding speed limit 1,800 Legal fees for purchase of land 3,500 Legal fees on recovery of trade debts 4,300 Fees for designing business logo 2,400 15,200 Entertainment expenses comprise: RM Gift vouchers to customers 11,200 Annual dinner for employees 8,100 Lunch with suppliers 2,500 Family Day with staff and their families 5,400 27,200 Donations consist of: RM Business zakat 4,200 Contribution made to a political party 2,500 Contribution to an approved institution: (Infrastructure for the poor s 346)(h)) 6,100 12,800 Repair and maintenance comprise: RM Repair of delivery van 4,100 Renovation of business premise 6,800 Installation of new air-conditioner in the premise 2,600 Repainting of Halim's house 2,300 15,800 Bad debts comprise: RM Net increase in specific provision 4,100 Net increase in general provision 3,200 Trade bad debts written off 5,800 13,100 Travelling expense comprise: RM Carriage cost for delivering stock to customers 7,700 Halim's holiday to Langkawi 3,000 10,700 8. 9. 10. 11. 12 20% of water and electricity expenses for personal use. Compensation paid to dismiss an employee due to wrongful act by him. Capital allowance charged for the year of assessment 2020 amounting to RM25,000 13. Required: Compute the statutory business income of Bonda Enterprise for the year of assessment 2020. Indicate 'Nil' for any item that does not require any adjustment. (Total: 18 marks) Bonda Enterprise owned by Halim is involved in local distribution of mini egg sponge cupcakes or bahulu cupcakes. The following is the Statement of Profit or Loss for his business for the year ended 31 December 2020. Bonda Enterprise Statement of Profit or Loss for the year ended 31 December 2020 Note Sales 652,000 Less: Cost of goods sold 125.000 Gross Profit 527,000 Add: Other income Interest income 2 13,400 Rental income 10.800 24.200 RM RM 1 3 551,200 4 5 Less: Operating expenses Remuneration Fees Entertainment expenses Donations Repair and maintenance Bad debts Travelling expenses Water and electricity expenses Compensation Depreciation Net Profit 8 9 10 11 12 283,000 15,200 27,200 12,800 15,800 13,100 10,700 7.300 5,600 12,800 (403.500) 147,700 Additional information: 1. Cost of goods sold include: Goods costing RM1,500 taken by Halim as a wedding gift for his cousin. The market value of the goods was RM1,800. 2. Interest income were received from: RM Fixed deposit account at CIMB bank 4,500 Charges on overdue trade accounts 8,900 13,400 3. Rental income: 3. Rental income received from a condominium rented out to Halim's friend. 4. 5. 6. 7. Remuneration comprise: Salary Bonus EPF RM RM RM Halim 57,000 18,000 22,000 Employees 119.000 22.500 44.500 176,000 40.500 66,500 Included in salary and bonus to employees was RM16,200 paid to shop assistant who is disabled. Fees comprise: RM Accounting service 3,200 Fines paid for exceeding speed limit 1,800 Legal fees for purchase of land 3,500 Legal fees on recovery of trade debts 4,300 Fees for designing business logo 2,400 15,200 Entertainment expenses comprise: RM Gift vouchers to customers 11,200 Annual dinner for employees 8,100 Lunch with suppliers 2,500 Family Day with staff and their families 5,400 27,200 Donations consist of: RM Business zakat 4,200 Contribution made to a political party 2,500 Contribution to an approved institution: (Infrastructure for the poor s 346)(h)) 6,100 12,800 Repair and maintenance comprise: RM Repair of delivery van 4,100 Renovation of business premise 6,800 Installation of new air-conditioner in the premise 2,600 Repainting of Halim's house 2,300 15,800 Bad debts comprise: RM Net increase in specific provision 4,100 Net increase in general provision 3,200 Trade bad debts written off 5,800 13,100 Travelling expense comprise: RM Carriage cost for delivering stock to customers 7,700 Halim's holiday to Langkawi 3,000 10,700 8. 9. 10. 11. 12 20% of water and electricity expenses for personal use. Compensation paid to dismiss an employee due to wrongful act by him. Capital allowance charged for the year of assessment 2020 amounting to RM25,000 13. Required: Compute the statutory business income of Bonda Enterprise for the year of assessment 2020. Indicate 'Nil' for any item that does not require any adjustment. (Total: 18 marks)