Beatrice and Doris are friends from Singapore Polytechnic and have been doing fashion designing since graduation...
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Beatrice and Doris are friends from Singapore Polytechnic and have been doing fashion designing since graduation and started a boutique at Orchard Road. They are each paid a monthly salary of $1,300 and during mid of last year, they decided to include one of the sales girls, Sheila as a partner with an equal share in the firm. Sheila has been receiving a monthly salary of $900 per month but after 1 July 2019, it will become $1000 per month. The profit and loss accounts for the year ended 30 September 2019 is as follows: Gross profit $615,000 Less: Depreciation 122,000 Advertisement 98,700 Donations 12,500 Office expenses 34,200 Bad debts 19,900 Legal & accounting 31,000 田 Transport 24,560 Salaries 72,500 Rental expenses 44,600 Entertainment 52,900 Miscellaneous 22,220 535,080 Net profit $79,920 Notes: a) Salaries - $72,500 Partners 37,200 Sales girls 21,000 Commission on sales 14,300 72,500 b) Advertisement -$98,700 The partners organised fashion and road shows and invited their customers. c) Donations - $12,500 Cash donations to institutions of public character Value of clothing donated for overseas disaster $9,800 $2,700 -31/8/19 12,500 d) Office expenses - S$34,200 Miscellaneous revenue expenses Installation of an alarm and CCTV camera $11,100 7,800 8,660 6640 Replacement of curtains Training fees for staffs 34,200 e) Bad debts - $19,900 Trade debts Credit cards default $7,970 4,880 7,050 Loan to Beatrice's friend 19,900 ) Legal and accounting - S$31,000 Retainer's fees Audit fees Partner's tax returns $4,500 12,000 4,200 1,300 6,900 2,100 Bad debts collection Renewal of tenancy agreement Preparation of loan agreement 31,000 == g) Transport – S$24,560 Reimbursements of expenses on: $11,110 9,440 4,010 Private cars Delivery vans Taxi fare reimbursements 24,560 =====| h) Entertainment - S$52,900 The above was expended as part of celebration for staff and families for securing an overseas contract. i) The capital allowances agreed by the Comptroller of Income Tax was $8,880 each for the old and new partnership. Required: Determine the partnership divisible profits for YIA 2020 and show the allocation to the respective partners Beatrice and Doris are friends from Singapore Polytechnic and have been doing fashion designing since graduation and started a boutique at Orchard Road. They are each paid a monthly salary of $1,300 and during mid of last year, they decided to include one of the sales girls, Sheila as a partner with an equal share in the firm. Sheila has been receiving a monthly salary of $900 per month but after 1 July 2019, it will become $1000 per month. The profit and loss accounts for the year ended 30 September 2019 is as follows: Gross profit $615,000 Less: Depreciation 122,000 Advertisement 98,700 Donations 12,500 Office expenses 34,200 Bad debts 19,900 Legal & accounting 31,000 田 Transport 24,560 Salaries 72,500 Rental expenses 44,600 Entertainment 52,900 Miscellaneous 22,220 535,080 Net profit $79,920 Notes: a) Salaries - $72,500 Partners 37,200 Sales girls 21,000 Commission on sales 14,300 72,500 b) Advertisement -$98,700 The partners organised fashion and road shows and invited their customers. c) Donations - $12,500 Cash donations to institutions of public character Value of clothing donated for overseas disaster $9,800 $2,700 -31/8/19 12,500 d) Office expenses - S$34,200 Miscellaneous revenue expenses Installation of an alarm and CCTV camera $11,100 7,800 8,660 6640 Replacement of curtains Training fees for staffs 34,200 e) Bad debts - $19,900 Trade debts Credit cards default $7,970 4,880 7,050 Loan to Beatrice's friend 19,900 ) Legal and accounting - S$31,000 Retainer's fees Audit fees Partner's tax returns $4,500 12,000 4,200 1,300 6,900 2,100 Bad debts collection Renewal of tenancy agreement Preparation of loan agreement 31,000 == g) Transport – S$24,560 Reimbursements of expenses on: $11,110 9,440 4,010 Private cars Delivery vans Taxi fare reimbursements 24,560 =====| h) Entertainment - S$52,900 The above was expended as part of celebration for staff and families for securing an overseas contract. i) The capital allowances agreed by the Comptroller of Income Tax was $8,880 each for the old and new partnership. Required: Determine the partnership divisible profits for YIA 2020 and show the allocation to the respective partners
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Behavioral Finance Psychology Decision-Making and Markets
ISBN: 978-0324661170
1st edition
Authors: Lucy Ackert
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