Question 5 Woody Sdn Bhd is a resident company in Peninsular Malaysia engaged in furniture making prepares its account for 31.10.20x7. The details are as follows: Note RM'000 Sales Cost of sales 1 RM'000 77,350 (56,440) 20,190 185 21,095 Other income 2 3 4 5 6 Less: Remuneration Repairs and maintenance Marketing Freight charges Financial charges Entertainment Motor vehicle expenses Provision for bad debts Profit before taxation should 3,972 308 1,682 152 820 268 770 644 8 9 10 (8,616) 12,479 Notes: 1. Cost of sales includes: (a) Furniture costing RM26,000 donated to an approved old folks home. The selling price was RM30,000 (b) A set of bedroom furniture costing RM6,400 sold to a member of staff at 5% discount. The selling price was RM7,000 2. Other income is in respect of gross rents derived from a property in Indonesia and received in Malaysia 3. Remuneration includes: (a) Entertainment allowance of RM500,000 paid to the managing director and the marketing executives. (b) Employees Provident Fund contributions of RM60,000 made by the company in respect of the abovementioned entertainment allowance. 4. Repairs and maintenance include: (a) Cost of maintaining a holiday bungalow in Penang used by senior executives of the company, RM30,000. (b) Cost of maintaining a holiday bungalow in Cameron Highlands used exclusively by the company's clients, RM42,000. 5. Marketing includes: The expenditure of RM321,000 on participation in an international trade fair held in Sydney. The company's participation was approved by the Minister of International Trade and Industry. The aim of the trade fair was to promote exports. Included in the expenditure is the cost of exhibits of RM230,000, gift bags of RM 65,000 and pamphlets of RM10,000. The balance of RM16,000 were used as travelling expenses, accommodation and daily allowances for the employees who participated in the trade fair 6 Question 5 Woody Sdn Bhd is a resident company in Peninsular Malaysia engaged in furniture making prepares its account for 31.10.20x7. The details are as follows: Note RM'000 Sales Cost of sales 1 RM'000 77,350 (56,440) 20,190 185 21,095 Other income 2 3 4 5 6 Less: Remuneration Repairs and maintenance Marketing Freight charges Financial charges Entertainment Motor vehicle expenses Provision for bad debts Profit before taxation should 3,972 308 1,682 152 820 268 770 644 8 9 10 (8,616) 12,479 Notes: 1. Cost of sales includes: (a) Furniture costing RM26,000 donated to an approved old folks home. The selling price was RM30,000 (b) A set of bedroom furniture costing RM6,400 sold to a member of staff at 5% discount. The selling price was RM7,000 2. Other income is in respect of gross rents derived from a property in Indonesia and received in Malaysia 3. Remuneration includes: (a) Entertainment allowance of RM500,000 paid to the managing director and the marketing executives. (b) Employees Provident Fund contributions of RM60,000 made by the company in respect of the abovementioned entertainment allowance. 4. Repairs and maintenance include: (a) Cost of maintaining a holiday bungalow in Penang used by senior executives of the company, RM30,000. (b) Cost of maintaining a holiday bungalow in Cameron Highlands used exclusively by the company's clients, RM42,000. 5. Marketing includes: The expenditure of RM321,000 on participation in an international trade fair held in Sydney. The company's participation was approved by the Minister of International Trade and Industry. The aim of the trade fair was to promote exports. Included in the expenditure is the cost of exhibits of RM230,000, gift bags of RM 65,000 and pamphlets of RM10,000. The balance of RM16,000 were used as travelling expenses, accommodation and daily allowances for the employees who participated in the trade fair 6