Rajesh started an electrical manufacturing and trading business named Rajesh Electrical Manufacturing and Trading on 1 February 2019. The following were expenses incurred by the business for the year ending 31 December 2019.

1. Legal fees of RM4,000, which include fees for collection of a debt of RM 2,000, bank loan arrangements of RM1,500 and the cost of an income tax appeal of RM500 for late filing.
2. Repairs and maintenance of RM12,000 which includes the replacement of a damaged door of the same type and size worth RM3,000 on 20 January 2019 and the extension of the roof of the shop amounting RM9,000 on 1 June 2019.

Required:

Evaluate (by indicating the amount) with reasons whether the above expenses are allowable or non-allowable deduction for the business in the year of assessment 2019.