Q1. Super Smooth (M) Sdn Bhd (SS) manufactures and sells premium digital inkjet & laser paper. The company paid-up ordinary capital as at 1 November 2019 was RM2.4 million, which was increased to RM2.6 million during the year 2020. SS's Statement of Comprehensive Income for the financial year ended 31 October 2020 as follows: Note RM RM Sales 1,640,000 1 Less: Cost of sales Gross profit _(710,000) 930,000 Add: Other incomes 2 91,500 3 3 Less: Expenses Advertising and marketing Depreciation Bad debts written off Rental Entertainment Foreign exchange loss Interest expense Repair and maintenance Motor vehicles expenses Legal and professional fees Miscellaneous expenses Salaries and wages 4 5 6 50,100 35,000 3,000 91,000 33,000 2,000 50,000 95,000 27,500 32,000 21,700 321,000 7 8 9 10 11 761,300 260,200 Profit before tax Notes: (1) Cost of sales includes: (i) Cost of sales included compensation of RM19,300 received from the insurance company for damages incurred on the materials imported from China Notes: (1) Cost of sales includes: (i) Cost of sales included compensation of RM19,300 received from the insurance company for damages incurred on the materials imported from China. (ii) Consultancy fees paid to Mr. Mark, a non-resident and the withholding tax remitted to the Inland Revenue Board (IRB) are shown below. Not paid the late payment penalty, if any. Date paid to non-resident 18 February 2020 16 March 2020 Date of remittance to IRB 5 April 2020 5 April 2020 RM 23,000 7,000 30,000 (2) Other incomes comprise: Interest income from overdue debtors Discount received from trade creditors Single tier dividend Fixed deposit interest from Public Bank Berhad Net rental income from Singapore RM 10,000 8,000 6,500 31,000 36,000 91,500 (3) Advertising and marketing comprises: Entertainment allowance for sales staff Travelling expenses incurred by sales staff Advertisement via online Promotional samples RM 24,000 17,000 4,000 5,100 50,100 (4) Rental of premises included rental of RM14,000 for two months from 1 October 2020 to 30 November 2020. (5) Entertainment expenses comprise: Gifts with company logo for a customers' annual dinner Lucky draw prizes to customers for purchases made Redemption vouchers given for purchases made Refreshment for employees RM 6,000 8,000 12,000 7,000 33,000 (6) Foreign exchange losses comprise: Unrealized foreign exchange gain on trade payable Realized foreign exchange loss on repayment of foreign loan RM (9,000) 11,000 2.000 (2) Other incomes comprise: Interest income from overdue debtors Discount received from trade creditors Single tier dividend Fixed deposit interest from Public Bank Berhad Net rental income from Singapore RM 10,000 8,000 6,500 31,000 36,000 91,500 (3) Advertising and marketing comprises: Entertainment allowance for sales staff Travelling expenses incurred by sales staff Advertisement via online Promotional samples RM 24,000 17,000 4,000 5,100 50,100 (4) Rental of premises included rental of RM14,000 for two months from 1 October 2020 to 30 November 2020. (5) Entertainment expenses comprise: Gifts with company logo for a customers' annual dinner Lucky draw prizes to customers for purchases made Redemption vouchers given for purchases made Refreshment for employees RM 6,000 8,000 12,000 7,000 33,000 (6) Foreign exchange losses comprise: Unrealized foreign exchange gain on trade payable Realized foreign exchange loss on repayment of foreign loan RM (9,000) 11,000 2.000 (6) Foreign exchange losses comprise: Unrealized foreign exchange gain on trade payable Realized foreign exchange loss on repayment of foreign loan RM (9,000) 11,000 2.000 (7) Repair and maintenance comprises: Maintenance cost on machines Clear the blockage of the drainage system RM 90,000 5,000 95,000 (8) Motor vehicles expenses include: Interest on hire purchase of the van Repair and maintenance for motor vehicles RM 500 27,000 27,500 21,700 (11) Wages and salaries include RM48,000 paid to a disable employee. (12) Other information: (i) Capital allowances brought forward from the year of assessment 2019 were RM5,000. (ii) Capital allowances for the year of assessment 2020 amounted to RM20,000 (excluding (iii) below). (iii) A new van costing RM150,000 was purchased on 2 April 2020 whereupon a deposit of RM30,000 was paid. The monthly loan instalment of RM1,100 which includes interest expense of RM100 commenced on 1 June 2020. (iv) The adjusted loss brought forward from the year of assessment 2019 was RM9,000. . Required: (a) Compute the chargeable income and income tax payable by Super Smooth (M) Sdn Bhd for the year of assessment 2020. (35 marks) Note: You are required to start with profit before tax. Every item mentioned in the notes to the accounts must be listed in your computation irrespective of whether an adjustment is necessary. Where no adjustment is required, indicate Nil' in the appropriate column. Q1. Super Smooth (M) Sdn Bhd (SS) manufactures and sells premium digital inkjet & laser paper. The company paid-up ordinary capital as at 1 November 2019 was RM2.4 million, which was increased to RM2.6 million during the year 2020. SS's Statement of Comprehensive Income for the financial year ended 31 October 2020 as follows: Note RM RM Sales 1,640,000 1 Less: Cost of sales Gross profit _(710,000) 930,000 Add: Other incomes 2 91,500 3 3 Less: Expenses Advertising and marketing Depreciation Bad debts written off Rental Entertainment Foreign exchange loss Interest expense Repair and maintenance Motor vehicles expenses Legal and professional fees Miscellaneous expenses Salaries and wages 4 5 6 50,100 35,000 3,000 91,000 33,000 2,000 50,000 95,000 27,500 32,000 21,700 321,000 7 8 9 10 11 761,300 260,200 Profit before tax Notes: (1) Cost of sales includes: (i) Cost of sales included compensation of RM19,300 received from the insurance company for damages incurred on the materials imported from China Notes: (1) Cost of sales includes: (i) Cost of sales included compensation of RM19,300 received from the insurance company for damages incurred on the materials imported from China. (ii) Consultancy fees paid to Mr. Mark, a non-resident and the withholding tax remitted to the Inland Revenue Board (IRB) are shown below. Not paid the late payment penalty, if any. Date paid to non-resident 18 February 2020 16 March 2020 Date of remittance to IRB 5 April 2020 5 April 2020 RM 23,000 7,000 30,000 (2) Other incomes comprise: Interest income from overdue debtors Discount received from trade creditors Single tier dividend Fixed deposit interest from Public Bank Berhad Net rental income from Singapore RM 10,000 8,000 6,500 31,000 36,000 91,500 (3) Advertising and marketing comprises: Entertainment allowance for sales staff Travelling expenses incurred by sales staff Advertisement via online Promotional samples RM 24,000 17,000 4,000 5,100 50,100 (4) Rental of premises included rental of RM14,000 for two months from 1 October 2020 to 30 November 2020. (5) Entertainment expenses comprise: Gifts with company logo for a customers' annual dinner Lucky draw prizes to customers for purchases made Redemption vouchers given for purchases made Refreshment for employees RM 6,000 8,000 12,000 7,000 33,000 (6) Foreign exchange losses comprise: Unrealized foreign exchange gain on trade payable Realized foreign exchange loss on repayment of foreign loan RM (9,000) 11,000 2.000 (2) Other incomes comprise: Interest income from overdue debtors Discount received from trade creditors Single tier dividend Fixed deposit interest from Public Bank Berhad Net rental income from Singapore RM 10,000 8,000 6,500 31,000 36,000 91,500 (3) Advertising and marketing comprises: Entertainment allowance for sales staff Travelling expenses incurred by sales staff Advertisement via online Promotional samples RM 24,000 17,000 4,000 5,100 50,100 (4) Rental of premises included rental of RM14,000 for two months from 1 October 2020 to 30 November 2020. (5) Entertainment expenses comprise: Gifts with company logo for a customers' annual dinner Lucky draw prizes to customers for purchases made Redemption vouchers given for purchases made Refreshment for employees RM 6,000 8,000 12,000 7,000 33,000 (6) Foreign exchange losses comprise: Unrealized foreign exchange gain on trade payable Realized foreign exchange loss on repayment of foreign loan RM (9,000) 11,000 2.000 (6) Foreign exchange losses comprise: Unrealized foreign exchange gain on trade payable Realized foreign exchange loss on repayment of foreign loan RM (9,000) 11,000 2.000 (7) Repair and maintenance comprises: Maintenance cost on machines Clear the blockage of the drainage system RM 90,000 5,000 95,000 (8) Motor vehicles expenses include: Interest on hire purchase of the van Repair and maintenance for motor vehicles RM 500 27,000 27,500 21,700 (11) Wages and salaries include RM48,000 paid to a disable employee. (12) Other information: (i) Capital allowances brought forward from the year of assessment 2019 were RM5,000. (ii) Capital allowances for the year of assessment 2020 amounted to RM20,000 (excluding (iii) below). (iii) A new van costing RM150,000 was purchased on 2 April 2020 whereupon a deposit of RM30,000 was paid. The monthly loan instalment of RM1,100 which includes interest expense of RM100 commenced on 1 June 2020. (iv) The adjusted loss brought forward from the year of assessment 2019 was RM9,000. . Required: (a) Compute the chargeable income and income tax payable by Super Smooth (M) Sdn Bhd for the year of assessment 2020. (35 marks) Note: You are required to start with profit before tax. Every item mentioned in the notes to the accounts must be listed in your computation irrespective of whether an adjustment is necessary. Where no adjustment is required, indicate Nil' in the appropriate column