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    Act 3152 Taxation 2 (Executive) TRIMESTER III, 2019/2020 Assessment 1

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    syah Rashid
    The document contains a taxation assessment with 4 questions regarding partnership taxation. Question 1 involves determining if two scenarios constitute partnership businesses. Question 2 requires calculating partners' divisible income and statutory income. Question 3 involves a partnership where one partner left and another joined, requiring calculation of statutory income. Question 4 asks about Limited Liability Partnerships and their tax features.

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    Act 3152 Taxation 2 (Executive) TRIMESTER III, 2019/2020 Assessment 1

    Uploaded by

    syah Rashid
    35 views3 pages
    The document contains a taxation assessment with 4 questions regarding partnership taxation. Question 1 involves determining if two scenarios constitute partnership businesses. Question 2 requires calculating partners' divisible income and statutory income. Question 3 involves a partnership where one partner left and another joined, requiring calculation of statutory income. Question 4 asks about Limited Liability Partnerships and their tax features.

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    tax

    Original Title

    ASSESSMENT 1

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    The document contains a taxation assessment with 4 questions regarding partnership taxation. Question 1 involves determining if two scenarios constitute partnership businesses. Question 2 requires calculating partners' divisible income and statutory income. Question 3 involves a partnership where one partner left and another joined, requiring calculation of statutory income. Question 4 asks about Limited Liability Partnerships and their tax features.

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    Download as docx, pdf, or txt
    35 views3 pages

    Act 3152 Taxation 2 (Executive) TRIMESTER III, 2019/2020 Assessment 1

    Uploaded by

    syah Rashid
    The document contains a taxation assessment with 4 questions regarding partnership taxation. Question 1 involves determining if two scenarios constitute partnership businesses. Question 2 requires calculating partners' divisible income and statutory income. Question 3 involves a partnership where one partner left and another joined, requiring calculation of statutory income. Question 4 asks about Limited Liability Partnerships and their tax features.

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    ACT 3152 TAXATION 2 (EXECUTIVE)

    TRIMESTER III, 2019/2020


    ASSESSMENT 1

    Question 1

    Situation 1

    Mr. Kanita commenced operating a beauty salon in Klang on 1 February 2018. She
    recruited two beauticians and paid them monthly allowances and provided free
    meals. At the end of the accounting period, she determined her net profit after
    deducting all operating expenses. She then drew 80% of the net profit as salary for
    herself and distributed the balance among the two beauticians as a share of profits.

    Situation 2

    A consortium is formed between Alpha Pte Ltd and Behta Sdn Bhd to initiate a
    construction project in Malaysia. Each party would be required to perform their
    function as stipulated in the contract entered into with the state government. All
    contract income and expenses will be shown in the consortium’s account. The net
    profit of the consortium shall be allocated as follows;

    Alpha Pte Ltd 45%

    Behta Sdn Bhd 55%

    Based on both situation, you are required to explain with reasons whether the above
    arrangement constitute a partnership business.

    Question 2

    The following information is available for Bala and Teo Enterprise, a partnership for
    the basis year 2019.

    Sales 150,000
    Less: cogs 50,000
    Gross profit 100,000
    Less: administrative expenses 50,000
    Partners’ salaries
    Bala 22,000
    Teo 14,000
    36,000
    Partners’ interest
    Bala 3000
    Teo 3000
    6000
    ACT 3152 TAXATION 2 (EXECUTIVE)
    TRIMESTER III, 2019/2020
    ASSESSMENT 1

    Partners’ private expenses


    Bala 2000 94,000
    Net profit 6,000

    Bala and Teo have agreed to share their income equally. The capital allowances for
    the partnership business for YA 2019 is RM 8000.

    You are required to determine the partners’ divisible income and partners’ statutory
    income for the YA 2019.

    Question 3

    Kee and Swee have been carrying on a sand excavation partnership business since
    1st January 2012. The accounts are prepared to 31 December each year. The
    partnership agreement provides for the following:

    Interest on capital : 10% per annum for each partner

    Capital contribution:
    Kee 100,000
    Swee 150,000

    Salary per month:


    Kee 3000
    Swee 5000

    Share of divisible income/loss:


    Kee 2/5
    Swee 3/5

    On June 2019, Kee left the partnership and withdrew his accumulated capital and
    profits up to the date.

    On 1 July 2019, Bala joined the partnership and the new partnership agreement
    provides for the following:

    Interest on capital : 10% per annum for each partner

    Capital contribution:
    Swee 150,000
    Bala 150,000

    Salary per month:


    Swee 5000
    Bala 5000
    ACT 3152 TAXATION 2 (EXECUTIVE)
    TRIMESTER III, 2019/2020
    ASSESSMENT 1

    Share of divisible income/loss:


    Swee ½
    Bala ½

    The partnership’s trading, profit and loss account for the year ended 31 December
    2019 is as follows:

    Income from sand extraction contract 9,400,000


    Less: cost of purchase (7,184,000)
    Profit from sand extraction 2,216,000
    Other income 142,000
    2,358,000
    Less: general overheads (648,000)
    Net profit for the year 1,710,000

    Included in general overheads are:

    Partners’ salary 108,000


    Partners’ interest on capital 27,500
    Depreciation on fixed assets 67,000

    Capital allowances for the YA 2019 is RM 80,000

    You are required to calculate the statutory income for the partnership for YA 2019.

    Question 4

    Explain what do you understand by the term Limited Liability Partnership (LLP) and
    what are the salient features of LLP from a corporate tax perspective?

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