Donald, Ronald and Mick started a supermarket business in Fiji under a partnership agreement stating profit & Loss sharing ratio of 6:3:1. During the financial year of 2020 the following transactions has taken place amounting to: 

$ Sales 3,500,000 

Sales Returns 69,050 

Purchases 1,560,000 

Interest on investment 35 000 

Advertising 27,000 

Fuel-Motor Vehicle (For vehicles used in business) 18,500 

Depreciation (For assets used in business) 35,000 

Telephone 14,500 

Goodwill Amortized 6 000 

Freight Inwards 2 000 

Utility 12,000 

Rent (For renting the shop space) 130,000 

FNPF 55,000 

Salaries & Wages 370,000 

Discount Received 3 500 

Purchase Returns 50 000 B

ank Charges 9 000 

Interest on mortgage 12,500 Accrued Expenses 5 500 

Insurance Premiums 8 000 

Miscellaneous Expenses 10,000 

Income Tax Payable 15 000 

Additional Information  

Closing stock 31/12/2020 $107,000  Opening stock 1/1/2020 $45,000  

Tax Rate 20%  

Donald and Mick are resident of Fiji and Ronald is a non-resident partner. 

Required: 

1. Prepare the Profit and loss statement of partnership business.

2. Calculate Tax Liability of each partner for the year 2020.