Stutta and Fords run a clothing retail shop as a partnership business. They share their profits in
Question:
Stutta and Fords run a clothing retail shop as a partnership business. They share their profits in a 40:60 ratio respectively. The net profit as per the partnership’s income statement was P550,000 before adjustments as at 31 December 2021. The following other information is also available:
Incomes (included) and expenses (deducted) in the Net Profit
Interest BSB P 30,000
Dividends – local company P 83,000
Depreciation P 258,000
Sale of shares – profit P 37,550
Salaries
Stutta P 120,000
Fords P 100,000
Interest on Capital Accounts
Stutta P 75,000
Fords P 80,000
Interest on Current Accounts
Stutta P 15,000
Fords P 25,000
Other additional information
Purchased :
Toyota sedan P 230,000
Plant and Machinery P 425,000
Approved pension fund contributions
Stutta P 75,000
Fords P 90,000
Required :
- Calculate the partnerships chargeable income and compute tax and chargeable income for both partners.
- Mrs. Anne- Marie purchased and sold the following shares in a private company as follows
February 2016 Purchased 3 000 shares for P40, 0000
June 2017 Purchased 700 shares for P100, 000
August 2019 Bonus issues of one for two
October 2020 Sold 3000 shares P350, 000
Required:
Calculate the capital gains tax payable for the year of assessment ended 30 June 2021 by Mrs. Anne - Marie.
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker