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Mr. Fauzi is the sole proprietor of Purple Enterprise, a business which involves in trading of home appliances. The business has been operating since 2010 and closes its account on every 31 December. Below is the income statement of the business for the year ended 31 December 2020:

Purple Enterprise

Income Statement

For the year ended 31 December 2020

	Notes	RM	RM
Sales Less: Cost of sales Opening stocks Purchases	1	150,000 230,000	700,000
		380,000
(-) Closing stocks		105,000
Gross profit			275,000
			425,000
Less Expenditure: Donation Advertisement Utilities expenses Communication Repair expenses Depreciation Insurance premium Salaries Approved EPF Rental on business premises Miscellaneous expenses Bad debt	2 3 4 5 6 7 8	4,000 3,400 21,400 10,000 9,100 17,800 2,100 186,000 19,500 89,000 6,400 4,700	373,400
Add Other Income: Dividend	9		51,600 7,600
Net Profit			59,200

Notes to the account:

1. Cost of sales

Included in the amount was the withdrawal of stock for personal use. The cost of the stock was RM800 while the market price was RM1,400.

2. Donation

Donation of two-door refrigerator amounting RM1,200 to Bonda Orphanage House, while the remaining donation was made to an approved institution.

3. Utilities expenses

Included water and electricity deposit amounted to RM1,500 and payment of utilities for Mr. Fauzis house amounting RM480.

4. Insurance premium

Included life insurance for employees amounted to RM700 while RM300 for Mr. Fauzis health insurance.

5. Salaries

Included in the amount of salaries are as follows:

	RM
Salary paid to disabled employees	9,500
Mr.Fauzis salary	36,000
Leave Passage Mr. Fauzi	4,500

6. Approved EPF

Included in approved EPF was payment of EPF for Mr. Fauzi amounted to RM2,800.

7. Miscellaneous expenses

The expenses are inclusive of RM4,300 paid for Mr Fauzis tax payable to IRB and penalty for the late renewal of business license amounting to RM750.

8. Bad debt

Bad debt consisted of specific provision amounting RM1,200 while the remaining was general provision.

9. Dividend

The dividend was received from a company listed in Bursa Malaysia main board.

Additional information:

1. Current year capital allowance equals to RM3,750.

2. Balancing charge amounted to RM1,800.

Required:

Calculate the total income for Mr. Fauzi for the year of assessment 2020.

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