Butler and John operate a music store as a partnership. The partnership agreement states that profits and losses are to be shared equally after adjusting for interest on capital, superannuation, drawings and salaries paid to the partners

Income ($)

Sales

$896,900

Interest from Advance to John

2,000

Expenses ($)

Cost of goods sold

416,000

Salary-Butler

63,000

Salary-employees

110,000

Superannuation to Butler

14,000

Superannuation to employees

13,000

Interest on capital to Butler

7,000

Interest on Capital to John

9,500

Interest on loan from CBA

19,000

Drawings to Butler

32,000

Drawings to John

17,000

Other deductible operating expenses

105,000

Additional information:

Trading stock balances were estimated as follows:

30 June 201986,000

30 June 202094,000

Required:

Calculate the net income of the partnership. Show the allocation of net income to each of the partners.