Reference no: EM133078629

Questions -

Q1. PJ Mask Sdn Bhd normally closes its account on 31st December each year. However, due to some reasons and for its convenience, the company decided to change its accounting period to 30th April in the following year. The adjusted income of the company for the relevant year is as follow: RM Year ended 2016 50,000 4 months period ended 30/4/2017 48,000 Year ended 30/4/2018 60,000 You are required to: Compute adjusted income of PJ Mask Sdn Bhd for all relevant year of assessment.

Q2. Apple & Onion Sdn Bhd was incorporated on 1.6.2017 and makes up its accounts annually to 31.12. The business of manufacturing commenced on 1.2.2018. The company ordered a new machine with price of RM 500,000 from Taiwan and was delivered on 1.1.2018. In order to prevent loud noise of the engine being heard on other floors, the existing building needed to be altered to install sound proof walls. The alteration cost was RM150,000. Then the company purchased a four-wheel drive vehicle on 1.3.2018 for RM145,000. The vehicle is not licensed as a commercial vehicle. The company claimed capital allowance on the ground that the vehicle is used to transport company's goods even though it is not licensed to do so. On 1.4.2018, the company purchased computer, RM5,500. After 6 months of usage, the computer was found to be unsuitable for business. It was disposed off at RM4,800 on 1.10.2018. The Inland Revenue Board accepted the reason for the disposal. Provided the rate of capital allowance; All initial allowance 20%; Annual allowance: Motor vehicle & heavy machinery 20%, Plant & machinery 14%, Office equipment, furniture and fittings 10% and computer 20%. Compute the capital alowances / balancing charge and residual expenditure for Apple & Onion Sdn Bhd for the YA 2018.