Management Writing Test
The time accustomed Anniversary and planning: Writing: 15 anniversary 3 hours ALL FIVE questions are compulsatory and MUST be attempted. Tax ante and allowances are on pages 2–3. Do NOT accessible this cardboard until instructed by the supervisor. During anniversary and planning time alone the catechism cardboard may be annotated. You allegation NOT address in your acknowledgment album until instructed by the supervisor. This catechism cardboard allegation not be removed from the assay hall. The Association of Chartered Certified Accountants Cardboard F6 (MYS) Fundamentals Level.
Calculations and accoutrement should be fabricated to the abutting RM. All apportionments should be fabricated to the abutting accomplished month. All accoutrement should be shown.
Household furnishings, apparatus, and accessories RM per ages Semi-furnished with appliance in the lounge, dining room, or bedchamber 70 Semi-furnished with the appliance as aloft added air-conditioners, and/or curtains and carpets 140 Fully furnished bounds 280 Domestic advice 400 Gardener 300 Disciplinarian 600 Telephone (fixed or mobile): RM per annum 300 300 Hardware Bills Basic allowances Automated barrio Bulb and accouterment – accepted Motor vehicles, abundant accouterment Computers, advice technology equipment, and computer software Appointment equipment, furniture, and accessories Antecedent Bulk % 10 20 20 20 20 Anniversary Bulk % 14 20 40 10 Sales tax and anniversary tax ante Bulk % 10 5 Sales tax Anniversary tax 3. P. T. O. 8D–MYSPA Cardboard F6MYS 8D–MYSAA Cardboard F6MYS ALL FIVE questions are compulsatory and MUST be attempted 1 James and Carol are bedmate and wife. James is disabled. The assets and costs of James and Carol for the year concluded 31 December 2008 are accepted to be as follows: RM James Appliance – Bacon 35,000 Carol Affiliation business – Approved assets Appliance – Bacon Travelling allowance 4,350 16,600 3,000 James incurred costs as follows: Donation to an accustomed academy Contributions to Advisers Provident Fund.
Medical assay for cocky Medical costs for his ancestor Fees for his part-time advance in Islamic costs at a university in Kuala Lumpur, accustomed by the Government Carol incurred costs as follows: Contributions to Advisers Provident Fund Medical bulk on blight analysis for herself Medical costs for her mother Basic acknowledging accessories for her disabled ancestor Travelling costs incurred in the advance of her assignment 2,600 3,850 400 1,300 1,100 2,156 2,700 900 3,600 4,000
Required: Compute the couple’s tax payable for the year of appraisal 2008 beneath collective assessment: (i) bold that James fabricated the election; and (ii) bold that Carol fabricated the election. (12 marks) (12 marks) Notes: (1) You should use two columns, one anniversary for (i) and (ii) above. (2) You should indicate, by appliance the chat ‘nil’, any bulk anniversary that does not authorize for claimed relief. (3) Marks will be awarded for the use of authentic abstruse acceding to call the abstracts absolute the stages in the ciphering of accountable income. (b) (i) Based on your tax computations in allotment (a), a accompaniment in which apron should accomplish the acclamation for collective appraisal and why. (1 mark) ii) Analyze, quantify, and summarise the tax extenuative consistent from authoritative the acclamation you accept defined in (i) aloft over the accession election. (5 marks) (30 marks) 4 This is a bare page.
Beauty Sdn Bhd, a citizen aggregation with a paid-up accustomed allotment basic of RM2 million, is affianced in the accomplish of corrective products. The company’s accumulation and accident anniversary for the year concluded 31 October 2008 is as follows:
Sales Bulk of sales Gross profit
Less: Accomplishment Contributions to accustomed schemes Ball Ability Amends for backward acquittal of denial tax on ability Gain on auctioning of a van Repairs and aliment Depreciation Bad debt accretion Charter rentals Advertising 7 8 RM000’s 27,800 (11,200), 16,600 (7,200),9,400.
Profit afore taxation Notes:
Remuneration includes: RM 114,000 400,000 Salaries of disabled advisers Ball allowance to chief management
Contributions to accustomed schemes comprise: RM 276,000 112,000, 388,000. The aggregation contributes 12% to the Advisers Provident Fund for all advisers and an added 8% to the Beauty Sdn Bhd arrangement in anniversary of the accomplishment of RM1,000,000 and the ball allowance of RM400,000 paid to chief administration executives.
Entertainment includes the bulk of ablution new articles amounting to RM38,000.
A ability amounting to RM630,000 net of the 10% denial tax was paid to a non-resident on 15 September 2008, in anniversary of the new products. The bulk of the denial tax and the accompanying amends charcoal unpaid.
Gain on auctioning of a van
A van was disposed of in August 2008 for RM36,000. The van had been purchased in December 2005 for RM65,000.
Repairs and aliment accommodate costs of advance to the company’s appointment architecture amounting to RM58,000. The acumen for this bulk was to accommodate a safe abode for disabled workers.
The bad debt accretion is in anniversary of a barter debt taken over from accession aggregation accustomed on the aforementioned business, three years ago.
Lease rentals are in anniversary of a motor agent costing in antithesis of RM150,000. The charter rentals commenced on 1 December 2007 at RM6,000 per ages for a aeon of 30 months. 8D–MYSAB Cardboard F6MYS
Other advice (i) A sum of RM60,000 was incurred on alterations to the company’s branch building, in acclimation to install accepted accouterment costing RM340,000. (ii) A sum of RM810,000 was incurred on acid the acreage in acclimation to adapt a armpit to install abundant accouterment costing RM190,000. (iii) For the year of appraisal 2008, basic allowances for bulb and accouterment will bulk to RM849,000 and automated architecture allowances to RM295,000, excluding any allowances or adjustments attributable to the basic expenditure, referred to in (i) and (ii) above.
Required: (a) Compute the tax payable by Beauty Sdn Bhd for the year of appraisal 2008. Note: your ciphering should alpha with the accumulation afore taxation bulk and chase the descriptions acclimated in the addendum to the accumulation and accident account, advertence ‘nil’ in the adapted cavalcade for any anniversary that does not crave adjustment. (18 marks) (b) Explain your analysis of the items declared below: (i) (ii) (iii) (iv) (v) accustomed schemes (note 2); auctioning of a van (note 5); renovations to the appointment architecture (note 6); charter rentals (note 8); and the bulk incurred in anniversary of the abundant accouterment and its accession (note 9 (ii)). (7 marks) (25 marks) 7 [P. T. O. 8D–MYSAC Cardboard F6MYS 3 Freshgreen Sdn Bhd is in the business of cultivating vegetables. The adapted assets of the aggregation for the year concluded 30 June 2008, afore demography into anniversary the following, amounted to RM563,000.
The acreage is anchored in a alien area, appropriately the barrio on the acreage accept no bulk alternative than for the alive of the farm.
The lorry was bought beneath a appoint acquirement agreement. The aggregation fabricated an antecedent acquittal of RM18,000 in July 2006. The antithesis was paid over a aeon of 23 months at RM2,200 per month, across-the-board of absorption of RM200 per month. The chapter payments commenced on 1 August 2006.
In July 2007 the aggregation agitated out burying of crops and incurred RM19,000 on allowance acreage and RM161,000 on fertilizer and seedlings. In January 2008 the aggregation agitated out replanting of crops and incurred the afterward expenses: RM 22,000 115,000 7,000 Allowance acreage Fertiliser and seedlings Labour In March 2008 Freshgreen Sdn Bhd disposed of the afterward assets on which agronomics allowance had been claimed in the antecedent years: Assets Abundance Active abode for advisers Date of architecture 1 January 2005 6 August 2005 Bulk RM 25,000 60,000. The abundance and the active abode were disposed of for RM10,000 and RM35,000 respectively.
(a) Compute the agronomics allowance and basic allowance beneath Schedule 3, Assets Tax Act, that can be claimed by Freshgreen Sdn Bhd for the year of appraisal 2008. (10 marks)
(b) Compute the approved assets of Freshgreen Sdn Bhd for the year of appraisal 2008. (7 marks)
(c) Compute the agronomics allegation on the base that Freshgreen Sdn Bhd fabricated an acclamation to advance the charge, beneath para 27, Schedule 3, Assets Tax Act, acutely advertence the years of appraisal affected. 3 marks)
Note: the ante of agronomics allowance are as follows: Bulk 50% 50% 50% 20% 10% Allowance and advancing acreage Burying of crops Architecture of anchorage and bridges on a acreage Architecture of active abode for workers. Architecture of barrio (20 marks) 8 8D–MYSAD Cardboard F6MYS 4 (a) (i) For the year of appraisal 2008 Cik Lee has assets from three sources: employment, business, and the rental of property. Required: State, with explanations, the accoutrement of the law applicative to Cik Lee in anniversary of the acquittal of tax for the year of appraisal 2008. (3 marks) ii) Encik Koon is accepted to accept the afterward assets for the year of appraisal 2008: RM 180,000 130,000 310,000 10,000 300,000 57,500 Approved assets from appliance Approved assets from a affiliation business Aggregate assets Accustomed donations Total assets Tax payable For the year of appraisal 2008, in accession to the tax deducted from his accomplishment beneath the Schedular Tax Deduction (STD) system, Encik Koon paid tax installments amounting to RM12,000, as per his appliance to the Director-General of Inland Revenue, to alter the bulk of his payment.
Required: Compute the penalty, if any, consistent from the appliance by Encik Koon to alter the chapter amounts. (6 marks) (b) Encik Smith is active as a anniversary administrator of a aggregation and his bacon is RM180,000 per annum. Encik Smith is provided with arid active adaptation for which the aggregation pays hire amounting to RM60,000 per annum. Encik Smith is not provided with a aggregation car but he has been accustomed the advantage of (i) a disciplinarian provided by the company, or (ii) the agreement of the driver’s bacon amounting to RM15,600 per annum.
Required: State, with explanations and acknowledging calculations, which of the aloft options Encik Smith should accept from a tax perspective. (6 marks) (15 marks). Chongdart Sdn Bhd is a accountant architect in the business of authoritative computer tables. The company’s annal for the aeon from 1 July to 31 August 2008 appearance the following: Sale of 1,200 tables at RM40 anniversary excluding sales tax, of which 900 were awash to barter in Malaysia and 300 were exported to China. Acquirement of the afterward raw abstracts and basic parts: Castors for table legs including sales tax. Locks for drawers, alien from Thailand Rollers for daybed shelf and drawers, purchased from Heng Sdn Bhd, a accountant architect Paint for corrective accomplishment undertaken by a subcontractor RM 3,000 2,300 6,400 5,100 None of the aloft items are absolved from sales tax. Chongdart Sdn Bhd acquired the approval of the Director-General of Customs and Excise for the acceptation of the locks from Thailand and the acquirement of the rollers from Heng Sdn Bhd. The subcontractor was absolved from licensing in appearance of the actuality that its anniversary sales about-face does not beat RM20,000. The adapted bulk of acquittance beneath the acclaim arrangement is 8%.
Required: Accompaniment the particulars which Chongdart Sdn Bhd allegation acknowledge in the sales tax return, Form JCP No. 1, for the taxable aeon 1 July to 31 August 2008, calm with the due date of acquittal of the tax to the Director-General of Customs and Excise. (5 marks). AB Sdn Bhd, a close of accountant surveyors, issued an antithesis to Buildup Sdn Bhd, on 4 March 2007, for analysis assignment amounting to RM15,000, disbursements amounting to RM950 and the anniversary tax payable. In April 2007 Buildup Sdn Bhd paid a sum of RM10,400 for the abounding bulk of the disbursements and 60% of the fees, including the anniversary tax thereon. The antithesis outstanding was accounting off as a bad debt by AB Sdn Bhd in November 2008, back Buildup Sdn Bhd went into compulsatory liquidation.
Required: Accompaniment the bulk of the anniversary tax payable by AB Sdn Bhd in anniversary of the aloft invoice, calm with the due date(s) for acquittal of the tax to the Director-General of Customs and Excise. (3 marks). Compute the bulk of the anniversary tax that AB Sdn Bhd can balance from the Director-General of Customs and Excise in due course, in anniversary of the bad debt accounting off. (2 marks) (10 marks) End of Catechism Cardboard 10
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