Question

. Resident Bank fully owned by Sweden investors has the following selected items drawn from its accounting books (Amounts in Saudi Riyal) (1.5 Marks).

Account	Amount	Deductible	Non-deductible
Allowance For Loan Losses	840,000
Employees’ share in retirement fund.	190,000
Bad debt (written off)	18,340
Donations to the Help the Poor Organization (non-licensed in Saudi)	11,350
Depreciation for New computers purchased to be used on research and development	35,100
Old employees’ reunion party expenses	3,000
Bank’ share in retirement fund within the limit in the law.	145,000
Loss on denoted assets	8,000
Income tax paid to tax and zakat authority	150,000

Required: check mark items in the table below either deductible or non-deductible under income tax law in the kingdom.

Answer 1

Account	Amount	Deductible	Non-deductible
Allowance For Loan Losses	840,000	Yes
Employees’ share in retirement fund.	190,000		Yes
Bad debt (written off)	18,340	Yes
Donations to the Help the Poor Organization (non-licensed in Saudi)	11,350		Yes
Depreciation for New computers purchased to be used on research and development	35,100	Yes
Old employees’ reunion party expenses	3,000		Yes
Bank share in retirement fund within the limit in the law.	145,000	Yes
Loss on denoted assets	8,000	-	-
Income tax paid to tax and zakat authority	150,000		Yes

Loss on denoted assets :

This term is not clear to provide answer