Wardle, Jingle and Trotter began trading on 1 October 2018, preparing accounts to 30 September each year

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Wardle, Jingle and Trotter began trading on 1 October 2018, preparing accounts to 30 September each year and sharing profits in the ratio 7:2:1. Results for the first two years of trading are as follows:

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(a) Compute each partner's trading income for 2018-19, 2019-20 and 2020-21.

(b) Compute each partner's bank interest for 2018-19, 2019-20 and 2020-21.

(c) Compute the gross amount of loan interest on which each partner is charged to tax in 2019-20.

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Taxation Finance Act 2020

ISBN: 9781292360713

26th Edition

Authors: Alan Melville

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Question Posted: Feb 10, 2024 01:01 AM

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Wardle, Jingle and Trotter began trading on 1 October 2018, preparing accounts to 30 September each year

Question:

Trading profit Bank interest received Loan interest received net (net amount) yle 30/9/19 117,460 200 992 yle 30/9/20 136,540 220 1,088

Step by Step Answer:

a Trading profit of 117460 for the year to 30 September 2019 is allocated Wardle 82222 Jingle 23492 ...View the full answer

Taxation Finance Act 2020

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