THIS IS PRINCIPLE OF TAXATION

REQUIRED

USING EXCEL PREPARE INCOME TAX RETURN FORM FOR EACH DARWAN AND PATRISYAH AND EMILIA?

Q3 Darwan and Batrisyah carry on the partnership Business of trading exclusive Kelantan batik in Jitra Kedah under the name of D&B Batik. Since Batrisyah worked full time, she handed over the management of the business to Darwan. She only comes to their business premises after working hours. They agreed to share profit and loss at the ratio of 70 (Darwan): 30 (Batrisyah). Sahil year of assessment 2020, there is an amount of business loss and capital allowances brought forward worth RM16,000 and RM6,000, respectively. In 2020, due to the Movement Control Order (MCO) imposed by the government to curb the spread of Covid 19, their business performance was also affected. The Statement of Profit or Loss of D & B Batik for the year ended 31 December 2020 is as follows: RM RM Turnover 1,020,000 Less: Cost of sales 730,000 Gross Profit 290,000 Less: Expenses Partners' salaries Darwan 84,000 Batrisyah Leave passage to Darwan Entertainment of existing customers Depreciation Other allowable expenses Net income 48,000 9,000 10,000 22,000 65,000 238,000 52,000 The following information pertaining to the non-current assets of the partnership which was as at 1 January 2020: Motor Van RM Qualifying cost Residual expenditure (as at 1.1.2020) 120,000 48,000 Office Equipment Qualifying cost Residual expenditure (as at 1.1.2020) 40,000 32,000 Darwan married to Emila since 1997. They have three (3) children named Nadia (15 years old), Nazri (12 years old) and Nurul (9 years old). Emilia is a freelance writer and novelist and actively writing novels for teenagers. However, she also assists her husband in running the business. Darwan paid her RM3,000 per month inclusive of 11% of her contribution to employee provident fund. In year 2020, she reported the following incomes: e-book publication RM15,000 Zuhau roy city novels RM36,000 translation work RM17,000 (received from Dewan Bahasa dan Pustaka Malaysia) In early 2020, Emilia was diagnosed with cancer. She needs to do regular medical check-up and has spent RM7,000 for the treatment. The cost of a complete medical check-up incurred by her was RM1,200.15000 Other information related to Darwan and Emilia 1. 1 Emilia paid RM840 fok life insurance premium on the policy subscribed under her name. She also paid RM150 for monthly medical insurance premium for herself. As for the children, Emilia subscribed medical and education insurance policy for Nadia, Nazri and Nurul with monthly premium of RM100 each. All premiums are paid at the end of every month. Darwan paid RM1,700 for life insurance premium on the policy subscribed under his 2. name. 3. Darwan pay zakah for RM5,000. The monthly tax deduction (MTD for Emilia was RM150 per month while Darwan also paid instalment tax payment amounted to RM5,760 -7 TL xlisbility ssp Zakat & MTD 4. Darwan deposited RM4,000 in his children's SSPN accounts REQUIRED: reret Divisible Income for the year assesment 2020 RM RM RM 52,000 Net Income Add: Non-allowable expenses: Depreciation Entertainment of existing customers (50%) 22,000 5,000 27,000 132000 Add: Partnership private expense: Partners' salaries Leave Passage to Darwan Provisional Adjusted Income 9,000 141,000 220,000 Less: Partners' Salary: Darwan Batrisyah Leave Passage to Darwan 84,000 48,000 132,000 9,000 141,000 79,000 Divisible Income Batrisyah (30%) RM 23,700 23,700 48,000 Total Income for the year assesment 2020 Darwan (70%) RM Profit Sharing: RM 79,000 Darwan (70%) 55,300 Batrisyah (30%) Share of Divisible Income 55,300 Add: Partnership Expenses: Partners' salaries: Darwan 84,000 Batrisyah Leave Passage to Darwan NIL Adjusted Income 139,300 Less: Capital Allowances current year (RM 24,000+ Darwan (RM 28,000 * 70%) 19,600 Batrisyah (RM 28,000 * 30%) Capital Allowances brought forward: RM 6,000 Darwan (RM 6,000 * 70%) 4,200 Batrisyah (RM 6,000 * 30%) Statutory Income 115,500 Aggregate Income 115,500 Less: Business Loss brought forward Darwan (RM 16,000 * 70%) 11,200 Batrisyah (RM 16,000 * 30%) Total Income 104,300 71,700 8,400 1,800 61,500 61,500 4,800 56,700 Motor Van RM RM YA 2018 120,000 Qualifying Expenditure Less: Initial Allowance (20%) Annual Allowance (20%) Residual Expenditure 24,000 24,000 48,000 72,000 YA 2019 Less: Annual Allowance (20%) Residual Expenditure 24,000 48,000 YA 2020 Less: Annual Allowance (20%) Residual Expenditure 24,000 24,000 RM RM 40,000 Office Equipment YA 2020 Qualifying Expenditure Initial Allowance (20%) Annual Allowance (10%) Residual Expenditure 8,000 4,000 12,000 28,000 Capital Allowances for Year of Assessment 2020 RM 24,000+ RM 4,000 RM 28,000 Q3 Darwan and Batrisyah carry on the partnership Business of trading exclusive Kelantan batik in Jitra Kedah under the name of D&B Batik. Since Batrisyah worked full time, she handed over the management of the business to Darwan. She only comes to their business premises after working hours. They agreed to share profit and loss at the ratio of 70 (Darwan): 30 (Batrisyah). Sahil year of assessment 2020, there is an amount of business loss and capital allowances brought forward worth RM16,000 and RM6,000, respectively. In 2020, due to the Movement Control Order (MCO) imposed by the government to curb the spread of Covid 19, their business performance was also affected. The Statement of Profit or Loss of D & B Batik for the year ended 31 December 2020 is as follows: RM RM Turnover 1,020,000 Less: Cost of sales 730,000 Gross Profit 290,000 Less: Expenses Partners' salaries Darwan 84,000 Batrisyah Leave passage to Darwan Entertainment of existing customers Depreciation Other allowable expenses Net income 48,000 9,000 10,000 22,000 65,000 238,000 52,000 The following information pertaining to the non-current assets of the partnership which was as at 1 January 2020: Motor Van RM Qualifying cost Residual expenditure (as at 1.1.2020) 120,000 48,000 Office Equipment Qualifying cost Residual expenditure (as at 1.1.2020) 40,000 32,000 Darwan married to Emila since 1997. They have three (3) children named Nadia (15 years old), Nazri (12 years old) and Nurul (9 years old). Emilia is a freelance writer and novelist and actively writing novels for teenagers. However, she also assists her husband in running the business. Darwan paid her RM3,000 per month inclusive of 11% of her contribution to employee provident fund. In year 2020, she reported the following incomes: e-book publication RM15,000 Zuhau roy city novels RM36,000 translation work RM17,000 (received from Dewan Bahasa dan Pustaka Malaysia) In early 2020, Emilia was diagnosed with cancer. She needs to do regular medical check-up and has spent RM7,000 for the treatment. The cost of a complete medical check-up incurred by her was RM1,200.15000 Other information related to Darwan and Emilia 1. 1 Emilia paid RM840 fok life insurance premium on the policy subscribed under her name. She also paid RM150 for monthly medical insurance premium for herself. As for the children, Emilia subscribed medical and education insurance policy for Nadia, Nazri and Nurul with monthly premium of RM100 each. All premiums are paid at the end of every month. Darwan paid RM1,700 for life insurance premium on the policy subscribed under his 2. name. 3. Darwan pay zakah for RM5,000. The monthly tax deduction (MTD for Emilia was RM150 per month while Darwan also paid instalment tax payment amounted to RM5,760 -7 TL xlisbility ssp Zakat & MTD 4. Darwan deposited RM4,000 in his children's SSPN accounts REQUIRED: reret Divisible Income for the year assesment 2020 RM RM RM 52,000 Net Income Add: Non-allowable expenses: Depreciation Entertainment of existing customers (50%) 22,000 5,000 27,000 132000 Add: Partnership private expense: Partners' salaries Leave Passage to Darwan Provisional Adjusted Income 9,000 141,000 220,000 Less: Partners' Salary: Darwan Batrisyah Leave Passage to Darwan 84,000 48,000 132,000 9,000 141,000 79,000 Divisible Income Batrisyah (30%) RM 23,700 23,700 48,000 Total Income for the year assesment 2020 Darwan (70%) RM Profit Sharing: RM 79,000 Darwan (70%) 55,300 Batrisyah (30%) Share of Divisible Income 55,300 Add: Partnership Expenses: Partners' salaries: Darwan 84,000 Batrisyah Leave Passage to Darwan NIL Adjusted Income 139,300 Less: Capital Allowances current year (RM 24,000+ Darwan (RM 28,000 * 70%) 19,600 Batrisyah (RM 28,000 * 30%) Capital Allowances brought forward: RM 6,000 Darwan (RM 6,000 * 70%) 4,200 Batrisyah (RM 6,000 * 30%) Statutory Income 115,500 Aggregate Income 115,500 Less: Business Loss brought forward Darwan (RM 16,000 * 70%) 11,200 Batrisyah (RM 16,000 * 30%) Total Income 104,300 71,700 8,400 1,800 61,500 61,500 4,800 56,700 Motor Van RM RM YA 2018 120,000 Qualifying Expenditure Less: Initial Allowance (20%) Annual Allowance (20%) Residual Expenditure 24,000 24,000 48,000 72,000 YA 2019 Less: Annual Allowance (20%) Residual Expenditure 24,000 48,000 YA 2020 Less: Annual Allowance (20%) Residual Expenditure 24,000 24,000 RM RM 40,000 Office Equipment YA 2020 Qualifying Expenditure Initial Allowance (20%) Annual Allowance (10%) Residual Expenditure 8,000 4,000 12,000 28,000 Capital Allowances for Year of Assessment 2020 RM 24,000+ RM 4,000 RM 28,000