From : xxxx
To : radziandco@yahoo.com
Subject : How to do full set of account and how to submit to LHDN.
Date : 21 December 2016
QUESTION
This
is a new small company sole proprieter. I have some question to ask
regarding this submission of account and account transaction. How to do full
set of account. Since the company is small, everything is do manually sales
record and purchase record...How I do for profit and loss and balance sheet?
How I submit to lhdn? Please advice thanks.
ANSWER
Thank you for the questions.
Any entities doing
business in Malaysia must declare their income to IRB. Declared income will be
used for the calculation of the tax payable. For your information, tax liability
will fall on individual (owner) for Enterprise or Sole Proprietorship type of
business.
Amount of tax to be
paid will be calculated based on net profit or loss of the business. Form B
which is the (Form for Resident Individuals Who Carries on Business) will be
used to calculate the amount of tax. The Form B must be submitted to the IRB no
later than 30 June on the subsequent
year.
It is advisable that
you provide business account beforehand in order to obtain the accurate
information from the financial statements. This information is required to fill
in Form B and also to be kept as a reference in the future.
Furthermore, you are
advised to keep all receipts and vouchers of sales and expenses during the
accounting period in preparing the financial statements. In addition, the bank
statements of the business are also important.
There are
few steps suggested in order to have a full set of account. First of all, you
must record all the transactions occurred in the company which includes:
a.
Sales
b.
Expenses
c.
Post the transactions into the ledgers.
d.
Bank reconciliation is needed as well. It is the
process of matching the balances in an entity's accounting records for a cash
account to the corresponding information on a bank
statement.
e.
Generate Income Statements on a periodic basis to
evaluate financial results and Balance Sheet which shows a company's assets,
liabilities, and equity accounts.
You can refer to the chart below for the accounting and
tax calculations process that needs to be done.
You shall seek for advice from
expert or an accountant regarding the preparation of the financial statements.
This is to prevent you from wrongly declared the business income.
Hope this
simple explanation answers all your queries.
Best
regards.
 |
