S&J Catering is a small catering business operating in Western Sydney. Business partners, Jack and Simon, established the business a year ago. To start up the business, the partners contributed $30,000 each. Simon is employed full-time as a chef and Jack manages the business. Simon and Jack have a written agreement that states that they will share profits or losses equally.

Explain why the above business arrangement would be considered to be a partnership arrangement.

Calculate the net partnership income for the year.

Calculate the distribution of partnership net income based on the partnership agreement

Income
Fees received	$235,000
Capital contributed by partners	$60,000
Expenses
Food supplies	$60,000
Salary and wages - Jack	$75,000
Superannuation	$7,125
Equipment maintenance	$12,000
Casual contractor payments	$30,000
Office supplies	$5,000

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