Compute the total employment income of mr raja for the year

Assignment Help Accounting Basics

Reference no: EM132726824

Mr Raja worked for Bharath Steel Sdn Bhd which is a subsidiary of an Indian company based at Port Klang. He has been working with this company since 2000. He is 60 years old. He returned to India for good on 20 December 2012 as he was due to retire on 28 February 2013.

Mr Raja provided the following information in his return for the year 2012:
RM

Salary per month 15,000
Leave pay (January and February 2013) 30,000
Bonus for the year 2012 30,000
Entertainment allowance per month 2,000
Travelling allowance per month 2,000
Leave passage to India for family 15,000
Gratuity for years of service with the company 400,000

Further information provided is as follows:

(i) He incurred RM14,000 on entertainment expenditure on official duties. The travel allowance is for official duties. The entertainment and travelling allowances were paidup to the end of 31 December 2012.

(ii) The company provided a bungalow till 31 December 2012. The rental of RM3,000 (including RM500 for furnishings) was paid for by the company. The house was larger than what the family actually required. Mr Raja estimates that 30 per cent of the house was used for official entertainment.

(iii) He was provided with a luxury car costing RM170,000 when new for the year 2012. The employer did not bear the cost of fuel for Mr Raja. However the car have already being used for 8 years before it was given to Mr Raja.

Required:

Problem 1: Compute the total employment income of Mr Raja for the year of assessment 2012.

Reference no: EM132726824

Questions Cloud

Determine how each metric will be measured and how often : The human resource professional continues to change from a transactional role, where compliance and administrative functions are the primary function.

Healing and autonomy : Mike and Joanne are the parents of James and Samuel, identical twins born eight years ago. James is currently suffering from acute glomerulonephritis,

Explain the term days of sales outstanding : Explain the term " Days of Sales Outstanding (Debtor Days)" and what does it mean if the graph for Days of Sales Outstanding is flat in the past couple of years

What is the required rate of return on AA stock : The risk-free rate is 4%, and the expected return on the market is 12%. What is the required rate of return on AA's stock

Compute the total employment income of mr raja for the year : Mr Raja worked for Bharath Steel Sdn Bhd, Compute the total employment income of Mr Raja for the year of assessment 2012.

What is the portfolio beta : Your investment club has only two stocks in its portfolio $20,000 is invested in a stock with a beta of 0.7, What is the portfolio beta

Should spider record the revenue earns from placing ads : Should Spider record the revenue it earns from placing ads for various third-party advertisers on Websites owned by the partners on a gross or net basis?

What is the stock unexplained return for the day : The stock had an actual return of 16.9% on that day. What is the stock's predicted return for that day? What is the stock's unexplained return for the day

Develop an introduction with a thesis statement : Should the law allow an employer to fire an employee without a good reason? Conduct research to provide examples to support your position and use your own.

User Account

All Pages