Question
Complete the blanks in the following table to reconcile the accounting to the income of partnership for taxation purposes. Just state the figure without any
Complete the blanks in the following table to reconcile the accounting to the income of partnership for taxation purposes. Just state the figure without any commas, full stops or dollar signs. Round up or down to the nearest dollar. If the figure is a negative, show it in brackets, eg (3000).
You are required to complete the Taxation column to show the amount that would be assessable or deductible for taxation purposes.
You are also required to complete the Effect on income column to show what you would add and/or deduct to reconcile the accounting figure to the tax figure. Under the effect of income, complete both Add and Deduct. If the amount is nil, state 0.
Accounting | Taxation | Effect on income | |
Non-SBE business received cash of $2,449,000 but had outstanding sales of $67,000 at 30 June. |
|
| Add or Deduct
|
Dividend of $70,000 franked to 100%. It carried franking credits of $30,000. |
|
| Add or Deduct
|
Provision for bad debts |
|
| Add or Deduct
|
Interest on arms-length loan paid to a partner
|
|
| Add or Deduct |
Borrowing expenses $2,000. Loan taken out on 1 July current year for 4 years. |
|
| Add or Deduct |
Interest on capital paid equally to partners |
|
| Add or Deduct |
Pre-paid expense in prior year. The Actual expense last year was $13,000 prepaid for 13 months on 1 June PY. (Assume prepayment provisions in apply as the business is non-SBE) |
|
| Add or Deduct |
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