question archive Saloon is a partnership formed between Shannon and Daniel, details of the partnership's profit or loss are as below: (1) Provisional adjusted income of the partnership was RM 221,400
Saloon is a partnership formed between Shannon and Daniel, details of the partnership's profit or loss are as below: (1) Provisional adjusted income of the partnership was RM 221,400
Subject:BusinessPrice: Bought3
Saloon is a partnership formed between Shannon and Daniel, details of the partnership's profit or loss are as below: (1) Provisional adjusted income of the partnership was RM 221,400. (2) The partnership was started by Shannon and Daniel, however on 1 July 2020, Kay joined the partnership, the profit sharing ratio is as below: Shannon Daniel Kay January 2020 - June 2020 50% 50% July 2020 - December 2020 40% 40% 20% (3) The partners' salaries are: RM Shannon 2,000 per month Daniel 2,000 per month Kay 3,000 per month (4) Interest on capital was paid at 10% on capital contribution: Capital contribution (RM) Shannon 100,000 Daniel 80,000 Kay No capital contributed (5) Shannon purchased a cabinet worth RM4,000 for her house using the partnership's funds. (6) Daniel purchased a personal computer worth RM3,300 for himself using the partnership's funds. (7) The capital allowance on the assets of the partnership for YA2020 was RM50.000 Required: (i) Starting from provisional adjusted income, compute the divisible income of the partnership for the year ended 31 December 2020. (i) Compute the statutory income of each partner for the year ended 31 December 2020 Indicate 'nil in the appropriate column for any item that does not require adjustment in your tax computation. (11 marks)
