ISB535 Individual Assingment

ISLAMIC FINANCIAL PLANNING (ISB535) INDIVIDUAL ASSINGMENT:
HOUSEHOLD FINANCIAL ANALYSIS AND TAX ASSESSMENT
PREPARED BY:
NAZRIN BIN SALLEHIN (2023165591)
PREPARED FOR:
SIR HAKIMI
TABLE OF CONTENT
1. BIODATA OF THE FAMILY

2. BALANCE SHEET AS AT 31 DECEMBER 2022
3. CASH FLOW STATEMENT FOR YEAR ENDED 31 DECEMBER 2022
4. PERSONAL FINANCIAL RATIOS AND ANALYSIS
5. INCOME TAX YEAR ASSESSMENT
BIODATA OF THE FAMILY
NAME: Sallehin bin Yunus
AGES: 58
RELIGION: Islam
ETHNITICY: Malay
STATUS: Married
Occupation: Retired
Relationship: Father
Type
Number of Children: 4
Number of people living in the house: 4 (Encik Sallehin, his wife and his two kids)
ENCIK SALLEHIN
BALANCE SHEET AS AT 31 DECEMBER 2022
Liquid Asset RM Current Liabilities RM

Cash 3,000 Utility bills 2,000
Saving account 25,000 Credit Card 17,000
Personal Asset Non-current Liabilities

Honda accord 2004 17,000 Car loan 55,000
Toyota Camry 2007 18,000 House loan 800,000
BMW car 2015 20,000 Personal loan 50,000
TV 4,000
Phones 2,000 Total Liabilities 924,000
Gold and jewellery 7,500
Investment Asset
Stocks investment 15,000
EPF securities 10,000
Real Asset
House in KL 750,000
House in Rawang 350,000
House in Cyberjaya 384,000 Net Worth 681,500
Total Asset 1,605,500 Net Worth + Total 1,605,500

Liabilities
ENCIK SALLEHIN
CASH FLOW STATEMENT FOR YEAR ENDED 31 DECEMBER 2023
ITEMS RM RM
Income:
Salary 120,000
Dividend 500
Total Income: 120,500
Expenses:
Fuel and Toll 2,500
Takaful 1,400
Car Loan 5,000
Instalments 5,700
Groceries 1,500
Food Expenses 8,000
Utility Bills 6,800
Family Vacation 2,000
Total Expenses: (31,100)
Savings (Cash Surplus/ Cash Deficit): 89,400
PERSONAL FINANCIAL RATIOS AND ANALYSIS
1. LIQUIDITY RATIO
Liquidity Ratio = Liquid Asset/Current Liabilities

= 28,000/19,000
= 1.47 Times
= The Liquidity ratios should be more than 1 to maintain
Liquidity. This means Encik Sallehin has high Liquidity position
and able to pay off short-term liabilities.
2. SOLVENCY RATIO
Solvency Ratio = Net Worth/Total Asset
= 681,500/1,605,500
= 0.42 Times
= The solvency ratio indicates that the cash flow is moderate
sufficient to meet short and long-term liabilities. The bigger the
ratios, the fewer chances of becoming bankrupt which has the
better ability to settle debt.
3. GEARING RATIO
Gearing Ratio = Long Term Liabilities/Total Asset
= 905,000/1,605,500
= 0.56 Times
= The gearing ratio is at moderate sufficient of debt to finance
the asset owned. This mean that Encik Sallehin has less risk or
less chances to go bankrupt.
4. SAVINGS RATIO
Savings Ratio = Cash Surplus/Income

= 89,400/120,500
= 0.74
= The saving ratio level is positive and at satisfactory level,
where he made some savings and can place extra amount in an
investment instrument.
5. DEBT SERVICE RATIO

Debt Service Ratio = Total Liabilities/Total Asset
= 924,000/1,605,500
= 0.58 Times
Smaller Debt Service Ratio is better because Encik Sallehin did
not have problem to pay debts. He also has the ability to pay off
loan repayment timely.
INCOME TAX YEAR ASSESSMENT
Zakat Planning
ITEM RM
Salary 120,000
Total Income 120,000
Allowable Deduction:
Individual 9,000
Spouse 4,000
Children 6,000
Contribution 3,300
(-) Total Deductions 22,300
Net income for Zakat Payment 97,700
Amount exceeded nisab of RM 21,453.36
Zakat Payable (97,700* 2.5%) 2,442.5
Tax Planning
ITEM RM
Aggregate Income:
Salary 62,000
Dividend 500
Total Aggregate Income/Total Income 62,500
Tax Relief:
Individual 9,000
Spouse 4,000
Child above 18 Further Education (degree) 8,000
Takaful + EPF Contribution 7,000
SSPN 2,400
Lifestyle 2,500
Smartphone 2,500
Total Tax Relief (35,400)
Chargeable Income 27,100
Tax Rate:
On the First RM20,000 150
Next (RM27,100 – RM20,000) x 3% 213
Gross Tax Payable 363
Less: Tax Rebate

Husband 400
Zakat 1,260
Tax Refund 1,297
Conclusion
The family’s current financial plans are in a good condition. As we can see, from the
income and expenditure statement, the last amount of money that they get is positive
which means it is a cash surplus and not cash deficit. In some situation where the amount
is negative, the individual must cover the deficit by drawing on savings or selling
investments and assets or increase borrowings. However, for this family, they can spend or
can use it to increase investments or reduce their liabilities.
The financial ratio for this family also shows that their financial are in a good health. Each
of the ratio shows good analysis. It tells that this family has the ability to pay off their debt
on time, ability to pay off short term liabilities and has some proportion of savings over
income. As for the taxes planning, the chargeable income value does not exceed
RM35,000. Hence, there’s no need to minus the tax rebate. Overall, the financial own by
this family is basically good and stable.

ISB535 Individual Assingment

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ISLAMIC FINANCIAL PLANNING (ISB535) INDIVIDUAL ASSINGMENT:

HOUSEHOLD FINANCIAL ANALYSIS AND TAX ASSESSMENT

NAZRIN BIN SALLEHIN (2023165591)

1. BIODATA OF THE FAMILY

NAME: Sallehin bin Yunus

BALANCE SHEET AS AT 31 DECEMBER 2022

Liquid Asset RM Current Liabilities RM

Personal Asset Non-current Liabilities

Total Asset 1,605,500 Net Worth + Total 1,605,500

Liquidity Ratio = Liquid Asset/Current Liabilities

Savings Ratio = Cash Surplus/Income

5. DEBT SERVICE RATIO

Less: Tax Rebate

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