POLITEKNIK SEBERANG PERAI

MALAYSIAN TAXATION 2
P 5206
( ASSIGNMENT 1)

NAMA AHLI KUMPULAN : NO PENDAFTARAN :

SITI ROHAYU BINTI CHE RAHIM 10PAT10F1051

NURUL IZATY BINTI JAAFAR 10PAT10F1083

RABIATULADAWIAH BINTI CHE RAMLI 10PAT10F1084

NURUL IZZATI BINTI CHE BALIUDIN 10PAT10F1093

AMNI NAFI’AH BINTI RAZALI 10PAT10F1066

NORINA BINTI BOHARI 10PAT10F1112

NAMA PENSYARAH :

PUAN ADIEBAH BINTI AHMAD

KELAS :

DAT 6E
ASSIGNMEN 3-6

Dr. Abdul Hakim and Dr. Abdul Rahman open up a clinic where both have been
partners since February 2001. The partners made capital contributions of RM200,000
and RM300,000 respectively. The partnership’s business accounting year ends on 31
December yearly.

For the year ending 31 december 2010, the information with respect to the
partnership’s business is as follows:

Abdul Hakim Abdul Rahman

Annual interest on capital 5% 5%

Salary (per month) RM4,000 RM5,000
Profit sharing ratio As per capital contribution
Travelling allowance (per month) RM1,700 RM2,000
Life insurance premium (per month) RM1,050 RM1,370

Additional Information

1. The partnership’s net profit for the year ending 31 December 2010 was
RM375,000. None of the expenditures related to the partners were deducted in
the profit and loss accounts.

2. On 15 September 2010, RM30,000 was incurred to repair medical equipment in

the clinic. This amount was not recorded.

3. The capital allowance for the year account 2010 was RM26,000.

4. Donations made by the partnership to Rumah Bakti Ulu Kelang and Hospital
UKM were RM7,000 and RM20,000 respectively. These amounts were not
deducted in the partnership’s profit and loss accounts (both approved).
Additional information related to year account 2010

Dr. Abdul Hakim

Other Income:

Salary per annum as part time doctor (locam) at Darul Ehsan Medical Center
(before EPF) RM65,500
Interest from Bank Islam Malaysia Berhad (saving account)-after 5% with holding
tax RM2,500

Dr. Abdul Rahman

Other Income:

Dividend income (net) from a Malaysia resident company, received on 1ˢ ͭ August

2010 RM10,800
Rental income from Australia (remitted to Malaysia) RM10,000

REQUIRED

For the relevant year account, compute:

a) The partnership’s provisional adjusted income

b) The partnership’s divisible income

c) Dr.Abdul Hakim and Dr.Abdul Rahman’s total income (25 Marks)

ANSWER:

Computation of Divisible Income for Dr. Abdul Hakim and Dr. Abdul Rahman for
year of Assessment 2010

RM RM
Net Profit 318,000

( + ) Expenses Not Allowable

Donation
Rumah Bakti Ulu Kelang 7,000
Hospital UKM 20,000 27,000
Provisional Adjusted Income 345,000

(-) Section 55(3)

Salary
Dr. Abdul Hakim ( 4,000 x 12 ) 48,000
Dr. Abdul Rahman (5,000 x 12) 60,000 (108,000)

Travelling Allowance
Dr. Abdul Hakim ( 1700x12) 20,400
Dr. Abdul Rahman (2000x12) 24,000 (44,400)

Life Insurance Premium

Dr. Abdul Hakim (1050x12) 12,600
Dr. Abdul Rahman ( 1370x12) 16,440 (29,040)

Interest on Capital
Dr. Abdul Hakim ( 200,000x5%) 10,000
Dr. Abdul Rahman (300,000x5% ) 15,000 (25,000)
Divisble Income 138,560
Computation of Total income for Dr. Abdul Hakim and Dr. Abdul Rahman : y/a 2010

Abdul HaKim Abdul Rahman

Salary 48,000 60,000
Interest on capital 10,000 15,000
Travelling allowance 20,400 24,000
Life insurance premium 12,600 16,440
Divisible income
Abdul HaKim (2/5 x 138,560) 55,424
Abdul Rahman (3/5 x 138,560) 83,136
ADJUSTED INCOME 146,424 198,576

( - ) Capital Allowance
Abdul Hakim (2/5 x 26,000) (10,400)
Abdul Rahman (3/5 x 26,000) (15,600)
Sec 4(a) : Statutory income of partnership
business 136,024 182,976

( + ) Other Incomes
Sec 4 (b) : Statutory income of salary 65,500 -
Sec 4 ( c) : Statutory income of dividend - 14,400

Statutory income of interest Exempted -

Sec 4 (d) : Statutory income
of Rental - Exempted

AGG
REGATE INCOME 201,524 197,376

( - ) Donation for Rumah Bakti Ulu Kelang

and Hospital UKM
Abdul Hakim ( 2/5 x 27,000 )= 10800 (10,800)
@ ( 7% x 201,524 ) = 14,107
(13,81
Abdul Rahman ( 3/5 x 27,000 ) = 16,200 6)
@ ( 7% x 197,376 )= 13,816

TOTAL INCOME 190,724 183,560