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Chapter 6 - Tutorial

The document provides information on fixed asset transactions for several companies and requests the calculation of capital allowances, balancing charges or allowances for each company up to the year of assessment 2021 or 2020. Details are given on dates and costs of asset purchases and disposals for cutting machines, machinery, motor vehicles, office equipment, and other assets. Capital allowances need to be computed for RazAlee Sdn Bhd for years up to 2021, Muqmeen Sdn Bhd up to 2021, Alana Trading up to 2020, Alladin Enterprise up to 2021, and Star Industrial Sdn Bhd up to 2020.

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NUR ALEEYA MAISARAH BINTI MOHD NASIR (AS)
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64 views3 pages

Chapter 6 - Tutorial

The document provides information on fixed asset transactions for several companies and requests the calculation of capital allowances, balancing charges or allowances for each company up to the year of assessment 2021 or 2020. Details are given on dates and costs of asset purchases and disposals for cutting machines, machinery, motor vehicles, office equipment, and other assets. Capital allowances need to be computed for RazAlee Sdn Bhd for years up to 2021, Muqmeen Sdn Bhd up to 2021, Alana Trading up to 2020, Alladin Enterprise up to 2021, and Star Industrial Sdn Bhd up to 2020.

Uploaded by

NUR ALEEYA MAISARAH BINTI MOHD NASIR (AS)
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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TUTORIAL CHAPTER 6

1. RazAlee Sdn Bhd, prepares its accounts to 31 December annually, carries on an aluminium glass
business in a rented building. Information regarding fixed assets transactions are given below:
Special Machine for Cutting Glass was purchased on 1 January 2016 for RM 25,000

Required:

Compute the capital allowances, balancing charges or allowances (if any) that can be claimed by RazAlee
Sdn Bhd for all the relevant years of assessment up to year of assessment 2021

2. Muqmeen Sdn Bhd is a printing company with a financial year ending on 31 December. Information
regarding fixed assets transactions are given below:

Machinery - Eclipse Spyder

Date of purchase : 1 January 2017, at cost RM 55,000


Date of disposal : 31 May 2020, at cost RM 20,000

Machinery – Ridgeline Model S2000


Machine was bought for the use of its business in Sudan and Muqmeen Sdn Bhd decided to
bring the machine back for the use of its business operation in Malaysia on 14 May 2020

Cost when purchased on 17 July 2018 RM 48,000


Market value on 14 May 2020 RM 33,000
Net book value on 14 May 2020 RM 32,000

Office equipment
Date of purchase : 5 September 2020, at cost RM 28,000

Required:

Compute the capital allowances, balancing charges or allowances (if any) that can be claimed
by Muqmeen Sdn Bhd for all the relevant years of assessment up to year of assessment 2021
3. Alana Trading is a business owned by Alana with a financial year ending 31 December. Information
regarding fixed assets transactions is given below:

i. Cutting machine
Date of purchase : 1 February 2017, at cost RM120,000
Date of disposal : 31 March 2020, at cost RM50,000

ii. Toyota Hilux


A motor vehicle, costing RM100,000 was bought on 1 July 2018 and it was not licensed for
commercial transportation. The car was sold for RM30,000 on 30 November 2020.

Required: Compute the CA, BA or BC (if any) for all the relevant years of assessment up to YA 2020.

4. Alladin Enterprise commenced trading business in August 2010 and made up accounts annually to 30
June. Below are the assets owned by Alladin Enterprise:
i. Honda Civic
Purchased car on 1 October 2017 with the cash price RM 95,000. The car was not licensed for
commercial transportation of goods or passengers. However, on August 2020, the car was sold
for RM 50,000.
ii. Machine
On 1 December 2016, Alladin Enterprise incurred RM 50,000 and RM 12,000 for acquisition of
machine and cost of preparing site respectively. On January 2020, the machine was disposed for
RM 14,000.
iii. Facsimile was bought for RM 10,000 on 1 February 2019. Since the business intends to buy more
sophisticated.

Required: Compute the CA, BA or BC (if any) for all the relevant years of assessment up to YA 2021.
5. Star Industrial Sdn Bhd which prepares it accounts to 31 December annually, carries on a manufacturing
business in Sarawak. Its headquater is based in Kuching and it also has a branch in Brunei. Details of its
expenditure on plant and machinery are as follow:
o On 1st January 2018 a machine was acquired at a cost of RM 63,000
o The car was purchased for the use of Sales Manager of the business on April 2017
The cash price of the car was RM 110,000. However , on August 2020, the car was
sold for RM 45,000.
o The computer was provided for Operation Manager. It was purchased on February
2020 with the price of RM 6,000
o The office equipment was bought by the business on 1st August 2018 for RM12,000.
Since the business intends to acquire added features equipment, it was then sold on
1st February 2020 for RM5,000.

Required: Compute the CA, BA or BC (if any) for all the relevant years of assessment up to YA 2020.

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