Puan Marini is the sole proprietor of Smart Enterprise, a business which involves in trading of women shoes. The business has been operating since 2010 and closes its account annually to 31 December. The income statement of Smart Enterprise for the year ended 31 December 2015 is as follows:

SMART ENTERPRISE

Income Statement

For the year ended 31 December 2015

	Notes		RM		RM
Sales Less: Cost of sales Opening stocks Purchases	1		120,000 650,000		980,000
			770,000
(-) Closing stocks			208,000		562,000
Gross Profit					418,000
Add Other Income: Interest income Dividend (single tier)	2 3				35,000 25,000
					478,000
Less: Expenditure: Advertisement Utilities expenses Marketing expenses Lease rental Salaries and allowance Donations Approved EPF Entertainments expenses Travelling expenses Sundry expenses Office maintenance expenses Repair expenses Provision for doubtful debt Loss on disposal of office equipment	4 5 6 7 8 9 10 11 12 13		13,400 23,700 15,000 17,400 145,000 8,500 47,170 48,400 28,900 35,750 17,340 8,100 6,450 1,250		416,360
Profit before tax					61,640

Notes:

1. Cost of sales

The cost of sales includes depreciation of Plant, Property and Equipment of RM56,000 and withdrawal of stock for personal use. The cost of the stock was RM700 while the market price was RM1,500.

2. Interest income

The interest income arose on a loan amount of RM350,000 to Megah Enterprise.

3. Dividend

The dividend was received from a company listed in Bursa Malaysia main board.

4. Utilities expenses

Included water and electricity deposit amounted to RM1,400 and payment of utilities for Puan Marinis house amounting RM540.

5. Lease Rental

Smart Enterprise has made lease rentals in respect of the following vehicles:

	Cost of Vehicle	Lease rental per month	Accumulated lease rental on 1 January 2014
Toyota Camry	210,000	2,450	58,800
Van	90,000	550	21,000

6. Salaries and allowance

Included in the amount of salaries are as follows:

1. Puan Marinis salary RM35,000
2. Puan Marinis Bonus RM5,000
3. Salary of 2 disable employees RM6,750

7. Donations

Cash donation amounting to RM3,800 was made to Rumah Bakti Anak Yatim while the remaining donation is for an approve charitable institution.

8. Entertainment expenses

Included in the expenses are RM8,000 to entertain the clients and the remaining expenses incurred are for the business purposes.

9. Travelling expenses

The expenses include leave passage for employees to Pulau Pangkor amounting to RM2,800.

10. Sundry expenses

This includes penalty for late submission of Puan Marinis annual tax return to IRB amounting to RM1,500

11. Office maintenance expenses

This expenses include the cost of purchasing refrigerator RM3,750 for office pantry.

12. Repair expenses

Two third (2/3) of the total repairs and maintenance cost was for business purpose.

13. Provision for doubtful debt

This included the provision for specific bad debt debts amounting to RM2,500.

14. The capital allowances for the assets acquired by Smart Enterprise prior to the start of the period is RM4,500. The capital allowances for the assets acquired during the current year are still to be calculated.

15. The balancing charge for year of assessment 2014 amounted to RM3,400.

Required:

1. Calculate the total income for Puan Marini for the year of assessment 2015.
2. What is the difference between capital allowance and depreciation?