QUESTION 1 (PARTNERSHIP CHAPTER)

NY & Partners has been established since 2015. The partnership business is currently owned by Nairn and Yusof. The following are the terms of partnership agreement:

                                                              Naim                                          Yusof

Capital contribution                           RM50,000                  RM50,000

Interest on capital(per annum)                5%                                           5%

Salary (per month)                               RM2,000                     RM2,400

Profit/loss sharing ratio                               1/3                                            2/3

Personal expenses (per annum)           RM5,000                     RM5,000

On 1 August 2019, Zakuan was admitted as a new partner. His capital contribution was RM45,000 and the interests on capital (per annum) is 5%, while his monthly salary is RM2,000. The new profit sharing ratio is 1:2:1 between Nairn, Yusof and Zakuan, while the others remain unchanged.

The provisional adjusted income for the year ending 31 December 2019 was RM158,000. The capital allowance (including unabsorbed capital allowance of RM5,000) was RM46,00

Additional information:

(i) Yusof received rental income of RM8,400 for the year of assessment 2019 and he made personal cash donation of RM21,000 to public school libraries.

(ii) The partnership donated RM5,000 to Rumah Orang Tua Danau (approved institution) on 15 November 2019.

Required:

Compute the total income for each partner for the year of assessment 2019.

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