PakcikKiahandMakcikKiahhasbeenmarriedfor30years.Theyhavefivebeautifulchildren whereallperformwellintheirlife.PakCikKiahrunagroceryshopatKampungNilai.Makcik Kiah work as senior executive in one of the Maybank branches inNilai.

PakcikKiahbeenoperatinghisgroceryshopatKampungNilaiformorethan20years.Hehas 2employeesworkingforhim,oneinchargeoftheshopandanotherstaffinchargeofdelivery. Below is the Statement of profit or loss for year ended 31 December2019.

Note

RM

RM

Sales 183,200

Less: Cost of sales 82,100

Gross profit 101,100

Add: Compensation received (notes1) 3,000

Less: Expenses

Salaries and bonus(notes2) 62,000

Donation(notes3) 20,000

Rental of premises 12,000

Electricity and water 1,440

Interest on bank overdraft 500

Depreciation 700

Insurance on inventory 2,500

Interest on hire purchase 620

Professional fees(notes 4) 1,250

Bad and doubtful debts(note 5) 2,500

Staff welfare(notes6) 1,000 104,510

Net Loss (410)

Note:

(1)Pakcik Kiah received the compensation from AXA Insurance company. The compensation is related to a fire accident on hisstock.

(2)Salaries and bonus included:

RM 2,000 as bonus for his employees for Hari Rayacelebration.

RM 12,000 is the salary and bonus for Pakcik Kiah throught theyear.

One of his employees is disable employees, his salary is RM 1,500 per month and he work with Pakcik Kiah for 10 monthsonly.

(3)Donationincluded:

In March 2019, Pakcik Kiah donated RM 10,000 cash to an orphanage that is an approvedorganization.

InJuly2019,PakcikKiahdonatedRM5,000cashandRM5,000ofdaily supply to an old folk home that is not an approvedorganization

(4) Professional fees included the following expenses

RM

Tax filing fees 200

Renewal of tenancy agreement for his shop 300

Accounting fees 650

Renewal of tenancy agreement for his own property 100

(5)The details of bad and doubtful debts in respect of trade debts as extracted for year assessment 2019 are asfollows:

Bad and doubtful debts account

RM

RM

General provision c/f

2,700

General provision b/f

2,100

Specific provision c/f

3,500

Specific provision b/f

3,100

Bad debts written off

1,500

Profit or loss

2,500

(6)Staff welfare consistsof:

RM

Medical benefit forthe staffs 500

Raya dinner for staff andtheirfamily 500

(include RM 150 is for existing supplier)

(7)Pakcik Kiah purchased a Toyota van in March 2017 which use for delivery. The van cost about RM 120,000 and he acquire a hire purchase loan for 5 years from Maybank. He made a deposit of RM 12,000 and the balance through loan with monthly installment of RM 2,250. The first installment was made on April2017.

(8)Pakcik Kiah has unabsorbed capital allowance b/f of RM 3,000. Business loss b/f of RM 2,100.

Inordertoincreasehisincome,PakcikKiahhasinvestedRM100,000intohisfriend'sbusiness and they started a partnership. However, Pakcik Kiah is a sleeping partner. In 2019, the partnership income he received was RM30,000.

PakcikKiahhastwopropertythatrentedoutforpassiveincome.Thedetailsabouttheproperty is stated asbelow:

Apartment Seri Cempaka at Bandar Baru Bangi

PakCik Kiah just bought this apartment in 2018. This apartment was first rented out in March 2019. The monthly rental Pakcik Kiah receive is RM 1,500. Below are the expenses incurred:

RM

Renovation on the kitchen

1,200

Installation of kitchen cabinet

1,500

Legal fees on tenancy agreement

920

Quit rent for year 2019

87.50

Assessment for year 2019

1,200

Commission for agent

1,500

Pangsapuri Sri Haneco at Semenyih

PakcikKiahhasrentedoutthispropertyfor5years.ThemonthlyrentalisRM800.Beloware the expensesincurred:

RM

Legal fees on tenancy agreement

320

Quit rent for year 2019

43.50

Assessment for year 2019

620

Repair expenses

800

Makcik Kiah is employed at senior executive in Maybank branch. She received net monthly salaryofRM3,560afterdeducting11%forEmployee'sProvidentFund.InJuly2019,Makcik Kiah decide to go for early retirement at the age of 49. She been working with Maybank since March 1999. To recognize her performance, the company pay her gratuity amounted to RM 288,000.

The remuneration package that received by Makcik Kiah is as follow:

Travelling allowance RM 500 permonth

RM 20,000 for bonus year 2018 (received in Jan2019)

Reimbursement of RM 1,200 for travelling expenses incurred when she travels to Kuching to attend ameeting.

The company offer her an option to take up 5,000 shares at RM 1.50 per share within oneyearfrom1September2018.ThemarketpricewasRM5.50at1September2018. Sheexercisedtheoptionin1April2019whenthemarketpricewasRM8.20pershare.

Medical and dental benefit amount to RM6,200.

Company offer Employee's Provident Fund of 15% ofsalary.

Leave passage to Australia and Sabah. For Australia in total of RM 3,500 where RM 2,500 for air ticket and RM 1,000 for meal. For Sabah in total of RM 4,200 where RM 3,000 is for air ticket and accommodation and RM 1,200 is formeal.

Makcik Kiah loves to compose music, she will always write songs during her free time. With her talent, one of her song was being publish and she received royalty income of RM 15,000. Besides, she also invested some of her money in some investment platform. She received RM 10,000 interest from Merdeka Bond. RM 3,200 dividend from Genting Bhd (single tier dividend).

PakcikKiahandMakcikKiahhavefivebeautifulchildrenandtwochildrenhavemarriedwith kids. Below is the information about theirchildren.

The eldest child age 30 and single, he is a lecturer in UiTM and he is still staying with hisparent.

Second child 28 and married and working as a executive in a smallcompany.

Third child 25 and married. She still studying her full time Master-degree inUiTM.

Four child 24 and single. He is studying full time degree in University of Northeim in Semenyih.

Fifthchild20andsingleandnotworking.Shemetanaccidentinyear2018anddoctor advise to amputate one of her leg. Pakcik Kiah bought her a wheelchair worth RM500 in early Feb 2019, so she can move around.

Both Pakcik Kiah and Makcik Kiah agree that Pakcik Kiah will claim for child relief. Other details for year 2019 are as follows:

Pakcik Kiah Makcik Kiah

Premiums paid on insurance policies on

- life on self 2,100 3,200

-Medical insurance 2,400 1,200

Cash donation to an approved institution - 1,190

Purchase new handphone 1,500 -

Complete medical examination expenses (self) 300 700

Medical expenses for parent - 3,500

Private Retirement Scheme 2,500 4,000

Unifi - 1,350

Medical support equipment 1,200 -

Bicycle for his son 520 -

Socso - 336

Zakat 1,500 10,000

Income tax installment /Mandatory Tax Deduction1,200 81,440

Calculate separate assessment and joint assessment((if Makcik Kiah elected for joint assessment))