3. Partnership - disposal of partnership assets Jose and Miguel trade as partners in an accounting practice. Their partnership agreement states that all profits and losses are to be shared in the ration 2:3 after allowing for partners; salaries & interest on capital. The partners own partnership assets and maintain fixed capital accounts in the ration 2:3. The following receipts and payments were recorded for the 2015/16 tax year: RECEIPTS Gross Fees: Proceeds from Sale of Building - note 1 $376,000 $870,000 PAYMENTS Interest on Capital -Jose Interest on Capital - Miguel Salary-Jose Salary - Miguel Interest on loan - Miguel Other expenses - all deductible $18,000 $12,000 $100,000 $35,000 $9,000 $74,000 RTO Provider No. 52128; CRICOS No: 03188C, Version: 1.1; Date Jan 2017