Anne, Lim and Shanmugam are in partnership, sharing profits and losses 1:1:2 respectively. The profit and...
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Anne, Lim and Shanmugam are in partnership, sharing profits and losses 1:1:2 respectively. The profit and loss account for the year ended 31 December 2007 is set out below: Gross profit Less: Business Expenses Interest on capital Partners' salaries Net Profit : Anne : Lim : Shanmugam : Anne : Lim : Shanmugam Anne Lim Shanmugam RM 1,400 1,800 3.000 20,000 22,000 18.000 The business expenses were inclusive of the following: Depreciation Legal expenses in respect of new lease General provision for bad debts RM Quit rent and assessment Insurance Cash withdrawal 50,000 6,200 Donations (RM3,200 were made to approved institutions) In addition, the partners also incurred the following expenses: 60,000 RM 250,000 (116,200) 133,800 RM 11,000 2,000 7,000 4,400 RM 9,000 7,500 3,300 Capital allowances due for the Year of Assessment 2007 amounted to RM 8,200. Out of this figure, 20% relates to the private use of such assets by Shanmugam. Required: (a) Compute the adjusted income, capital allowances and approved donation allocable to each partner. (b) Explain briefly how profits of a partnership are assessed to tax. responsible for filing the partnership return. (12 marks) Who is (3 marks) Anne, Lim and Shanmugam are in partnership, sharing profits and losses 1:1:2 respectively. The profit and loss account for the year ended 31 December 2007 is set out below: Gross profit Less: Business Expenses Interest on capital Partners' salaries Net Profit : Anne : Lim : Shanmugam : Anne : Lim : Shanmugam Anne Lim Shanmugam RM 1,400 1,800 3.000 20,000 22,000 18.000 The business expenses were inclusive of the following: Depreciation Legal expenses in respect of new lease General provision for bad debts RM Quit rent and assessment Insurance Cash withdrawal 50,000 6,200 Donations (RM3,200 were made to approved institutions) In addition, the partners also incurred the following expenses: 60,000 RM 250,000 (116,200) 133,800 RM 11,000 2,000 7,000 4,400 RM 9,000 7,500 3,300 Capital allowances due for the Year of Assessment 2007 amounted to RM 8,200. Out of this figure, 20% relates to the private use of such assets by Shanmugam. Required: (a) Compute the adjusted income, capital allowances and approved donation allocable to each partner. (b) Explain briefly how profits of a partnership are assessed to tax. responsible for filing the partnership return. (12 marks) Who is (3 marks)
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Accounting For Cambridge International AS And A Level
ISBN: 9780198399711
1st Edition
Authors: Jacqueline Halls Bryan, Peter Hailstone
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