Question

a) At 31 December 2017, Senyum Sdn Bhd had a deferred tax liability of RM38,000. At 31 December 2018, the deferred tax liability is RM45,000. The company's 2018 current tax payable is RM50,000. Required: i) Compute the tax expense for Senyum Sdn Bhd for the year 2018. (5 marks) (CLO1:PLO1:C3) ii) Briefly explain what deferred tax is. (2 marks) (CLO1:PLO1:C1) b) Murni Berhad recognised a deferred tax liability for the year ended 31 March 2017 which was related solely to a difference between rates of capital allowance and depreciation. The carrying value of plant and machinery was RM300,000 and tax base was RM200,000. Tax rate was 25%. The following transactions took place during 2018: - Research and development expenditure of RM120,000 was capitalised but was deducted for tax purpose. There was no amortisation during the year. Income receivable was recognised of RM20,000 but none has been received yet. Provision for environment clean-up of RM10,000 has been made. The expenditure would be tax deductible when incurred only. The trade receivables were disclosed at RM35,000 after providing for doubtful debts of RM2,500. - The tax payable for the year was calculated at RM330,000. Required: Calculate the amount of tax expense as charged in the Statement of Profit or Loss. (18 marks) (CLO1:PL01:04)

Answer 1

expense for fox year 2018. I Compute Senyum 301: Dot the Sdn Defessed Tax Bhd Tax Liability A/C Co. CRM) AMOUNT RM. PARTICULARS DATE PARUCULARS AMOUNT || DATEI PARTICOLARS TA 2017 Decal Bo Balance cid 38,000 Dec 31 Bg Tax Payable 38.000 [ 38,000 Jani By Balance bhd 38,000 Dec31 to Balance eld 45,00008031 By Tax payable 7,000 38,000 2018 2018 145,000 45,000

Date: DATE Do Tax Payable Ale co 1 PARTICULARS CRM JAMII DATE PARTICULARS_AMOUT 2018 SOUS TO Bank (B/P 43,000 Dec 31 By Income Tax 50,000 131 To Defessed Tax Liability 7,000 150,000 50,000 NOTE: So, in F.y. 2018 the company Tax paid RM 7,000 Tax Liability is RM 50,000 only RM 43,000 and is trans fessed Liability A/C. but it remaining to Defersed Conclusion The for F.4. 2018 Current Tax expense is RM 43,000.

Notes Date: i Defessed Tax Liability. . It is the tax the company is due to Government but not paid yet On the other hand it shows the company a pay more income (ชชา Toade Receivables age. based on

Tax Notes AS per payable fox RM 3,30,000 question take year 2018 is & Tax Role (25000) MOUNT 3,30,000 Tax Payable Bor 100% 25°/0 - - 3,30,000 Total Profit = 3,30,000 x100 25 = RM 1320000 Profit for 2018 = 1320,000 environment H) Provision for clean-up 10,000 & Amortisation of R&D = 120,000 receivable = 20,000 (1) Income G) Trade receivable = 35,000 Profit for 2018 = 12,55000 - Actual

Profit Tax = RM Liability = 12,55,000 RM 12 55000x 25% RM 313,750