Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

4. Ekin and Qiqi are partners. Their business accounts show a net loss of RM72,000 for the year ended 30 September 2020. Business expenses include:

4. Ekin and Qiqi are partners. Their business accounts show a net loss of RM72,000 for the year ended 30 September 2020. Business expenses include: RM Depreciation 2,500 Entertainment of clients 1,800 Donations 1,000 of which RM800 was donated to approved charities. The partnership agreement provides for an annual salary of RM18,000 to Ekin, RM24,000 to Qiqi and interest on capital of RM900 to Ekin. The profit sharing ratio is 70% to Ekin and 30% to Qiqi. Capital allowances for YA 2020 amount to RM2,200. Ekin has rental income (adjusted) of RM15,600 for the year ending 31 December 2020. Required; a) Compute the adjusted income/loss and divisible income/loss of the partnership for the year ended 30 September 2020. b) Compute the total income of Ekin and Qiqi for YA 2020 showing the allocation of capital allowances and donations from the partnership

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Budget Management Comprehensive Beginner S Guide To Budget Management

Authors: Steve Wilson

1091168881, 978-1091168886

More Books

Students also viewed these Accounting questions

Question

=+1 Why are local employment laws important to IHRM?

Answered: 1 week ago

Question

=+ Are some laws more important than others? If so, which ones?

Answered: 1 week ago