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

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 :

  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

Required:

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


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