Stutta and Fords run a clothing retail shop as a

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


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 :

  1. Calculate the partnerships chargeable income and compute tax and chargeable income for both partners.

  1. 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


Calculate the capital gains tax payable for the year of assessment ended 30 June 2021 by Mrs. Anne - Marie. 


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