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Question 2 Mrs . Aminah is the owner of Aroma Confections, a small confectionery in Ipoh. The business closes its accounts annually on 3 1

Question 2 Mrs. Aminah is the owner of Aroma Confections, a small confectionery in Ipoh. The business closes its accounts annually on 31 December. Below is the 2023 Statement of Profit or Loss. Statement of Profit or Loss for the year ended 31 December 2023 Sales Less: Cost of goods sold Gross Profit Add: Other income Dividend Rent received (1.1.2023 to 31.12.2023) Gain on disposal of van Less: Operating expenses Salaries, bonus and EPF Transportation Water and eQuestion 2 Mrs. Aminah is the owner of Aroma Confections, a small confectionery in Ipoh. The business closes its accounts annually on 31 December. Below is the 2023 Statement of Profit or Loss. Statement of Profit or Loss for the year ended 31 December 2023 Note RM RM Sales 510,000 Less: Cost of goods sold 1(135,000) Gross Profit 375,000 Add: Other income Dividend 4,300 Rent received (1.1.2023 to 31.12.2023)412,000 Gain on disposal of van 1,90018,200393,200 Less: Operating expenses Salaries, bonus and EPF 2102,200 Transportation 33,400 Water and electricity 43,300 Insurance 53,400 Entertainment 62,600 Fees and donations 75,900 Depreciation 6,200 Bad debts 85,000 Rates and taxes 95,800 Repair and maintenance 108,000 Rent 115,200(151,000) Net Profit 242,200 Notes: 1. Aminah took goods valued at RM1,200 at cost for personal use, and this amount was included in the cost of goods sold. The market value of these goods was 25% higher than the cost. 2. Aminah received a monthly salary of RM3,500 and contributed RM500 to the EPF every month. Ali and Zara, two permanent employees at the confectionery, earned monthly salaries of RM1,800 and RM1,500, respectively, with EPF contributions of RM400 and RM250 each month. Zara is a physically disabled person, as approved by the Department of Social Welfare. All of them received a year-end bonus equal to a month's salary. 3. The transportation costs included carriage inwards at RM2,000 and carriage outwards at RM800. Also, a flight ticket costing RM390 for Aminah's son, Idris, was paid for using the business account. 4. For the last three years, Aroma Confections has operated out of a three-storey building in Ipoh, and it has generated rental income by renting out the top floor, which accounts for one third of the building's total space. The confectionery is responsible for two-thirds of the water and electricity costs, while the remaining third is charged to the tenants on the top floor. 5. Insurance costs included RM1,250 for Aminah's medical insurance, RM1,360 for her children's educational insurance, and RM790 for the van's insurance. 6. Entertainment expenses were distributed as follows: 30% on hampers given to customers, 50% on a Langkawi trip as a reward for employees who achieved their sales targets, and the remaining 20% on entertaining potential clients. 7. Fees and donations details are as follows: Payment made to trade debt collectors Cash donation to an approved institution Renewal fee for a business loan for working capital Late penalty fee for business license renewal Cash donation to an approved library (apply s44(8)) RM 4001,0001003004,1008. Of the total bad debts written off, 50% were related to trade debts, and the remaining 50% were loans given to employees. 9. For Aroma's three-storey building, the quit rent was RM600, and the assessment fee was RM1,200. The road tax for the company's van amounted to RM100, while Aminah faced income tax penalties of RM3,900 for the year of assessment 2022.10. The repair and maintenance expenses included RM5,200 for renovations to the reception area and RM2,800 for acquiring a new oven. 11. The rental expenses were equally divided between two motorbikes, with one primarily used by Zara for business-related tasks and the other used by Aminah's son, Idris. 12. The balancing charge and capital allowance for the year 2023 amounted to RM1,400 and RM4,200, respectively. Other information: Aminah is a single mother. As of 1 January 2023, she and her husband had officially divorced due to irreconcilable differences that emerged over the years. Following her divorce on 1 January 2023, Aminah received RM2,100 in monthly alimony. She claimed reliefs for her children: Adam (14, disabled), Faris (18, in secondary school), and Idris (21, attending Universiti Sains Malaysia for a finance degree). She also paid RM8,500 for her 67-year-old mother's medical expenses. 8 She donated RM26,000 in medical equipment to an approved healthcare facility. An unabsorbed business loss of RM14,000 was carried forward from the previous year. Required: Calculate Aminah's chargeable income for the assessment year 2023.(Every item mentioned in the notes must be included in your computation, regardless of whether an adjustment is required. Where no adjustment is required, indicate 'NIL' in the appropriate column.)

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