Puan Fatimah is the owner of Permai Trading in Gurun Kedah. The accounts are closed on 31 December annually. She seeks advise from you as her tax agent on the computation of capital allowances for the non-current assets used in her business as follows: Machinery The business acquired imported a machinery (general machinery) on September 2016 costing RM100,000 from Japan. In addition, the business incurred RM15,000 for installation cost of the machinery. Тоyota Hilux On 1 November 2014, a new Toyota Hilux which was licensed for commercial transportation was acquired on hire purchase terms. The relevant information was as follows: Cash price RM 105,000 Deposit RM45,000 paid on 1st October 2014 : Monthly instalment : RM2,125 commenced on 30 November 2014 Total instalments : 48 months On 15 August 2016, the Toyota Hilux was sold for RM70,000. Office Equipment An office equipment costing RM30,000 was brought into use in Gurun Kedah on 30 April 2016. The assets were previously used for Puan Fatimah's partnership business in Thailand. The net book value and the market value of the office equipment at the date of transfer were RM12,000 and RM18,000 respectively. Required: Compute capital allowances and balancing charges/allowances (if any) for the relevant years of assessment up to the year of assessment 2017.
Puan Fatimah is the owner of Permai Trading in Gurun Kedah. The accounts are closed on 31 December annually. She seeks advise from you as her tax agent on the computation of capital allowances for the non-current assets used in her business as follows: Machinery The business acquired imported a machinery (general machinery) on September 2016 costing RM100,000 from Japan. In addition, the business incurred RM15,000 for installation cost of the machinery. Тоyota Hilux On 1 November 2014, a new Toyota Hilux which was licensed for commercial transportation was acquired on hire purchase terms. The relevant information was as follows: Cash price RM 105,000 Deposit RM45,000 paid on 1st October 2014 : Monthly instalment : RM2,125 commenced on 30 November 2014 Total instalments : 48 months On 15 August 2016, the Toyota Hilux was sold for RM70,000. Office Equipment An office equipment costing RM30,000 was brought into use in Gurun Kedah on 30 April 2016. The assets were previously used for Puan Fatimah's partnership business in Thailand. The net book value and the market value of the office equipment at the date of transfer were RM12,000 and RM18,000 respectively. Required: Compute capital allowances and balancing charges/allowances (if any) for the relevant years of assessment up to the year of assessment 2017.
Chapter18: Accounting Periods And Methods
Section: Chapter Questions
Problem 3DQ
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Transcribed Image Text:Puan Fatimah is the owner of Permai Trading in Gurun Kedah. The accounts are
closed on 31 December annually. She seeks advise from you as her tax agent on
the computation of capital allowances for the non-current assets used in her
business as follows:
Machinery
The business acquired imported a machinery (general machinery) on September
2016 costing RM100,000 from Japan. In addition, the business incurred
RM15,000 for installation cost of the machinery.
Тоyota Hilux
On 1 November 2014, a new Toyota Hilux which was licensed for commercial
transportation was acquired on hire purchase terms. The relevant information was
as follows:
Cash price
RM 105,000
Deposit
RM45,000 paid on 1st October 2014
:
Monthly instalment :
RM2,125 commenced on 30 November 2014
Total instalments
:
48 months
On 15 August 2016, the Toyota Hilux was sold for RM70,000.
Office Equipment
An office equipment costing RM30,000 was brought into use in Gurun Kedah on
30 April 2016. The assets were previously used for Puan Fatimah's partnership
business in Thailand. The net book value and the market value of the office
equipment at the date of transfer were RM12,000 and RM18,000 respectively.
Required:
Compute capital allowances and balancing charges/allowances (if any) for the
relevant years of assessment up to the year of assessment 2017.
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