Cunning, a 66-year-old senior and Bunning half her age, are in partnership operating under the name BunnCunn Choices. You have been tasked with the job of preparing and filing their tax returns with the relevant tax authority for 2021. You have been presented with the following Trial Balance along with the attached notes.

Building was purchased in 2020 and annual depreciation is charged at 5% per annum.

Bunning is a salaried partner who does not share in profits. Included in salaries is $3m paid to him for the year.

The amount for Bad debts is estimated based on debtors balance

Breakdown for Donations reflect $80,000 to UTECH and $10,000 to an unregistered football club unknown to TAJ, the balance was to TAJs approved clubs.

Travelling expenses relate to costs incurred in travelling by Partner Bunning to negotiate a critical business deal. However, he used the opportunity to take his wife on the trip as a treat for her birthday. Costs relating to having his wife on the trip is $40,000.

Estimated tax payment for 2021 of $100,000 was paid by Cunning from personal funds

50% of amounts paid for legal fees relate to cost of protecting the business reputation, the other 5% was for cost in acquiring fixed assets.

Note: Assume NIS rate of 3% and ceiling of J$3m throughout the year 2021.

BunnCunn Choices Trial Balance Year ended December 31, 2021
Description	Debit	Credit
Land	2,500,000
Industrial Building	8,000,000
Accumulated Depreciation - Building		800,000
Motor Vehicle (purchased in 2021)	2,000,000
Accumulated Depreciation - Motor Vehicle		400,000
Capital: Cunning		3,000,000
Capital: Bunning		2,000,000
Drawings for Bunning	34,000
Debtors	330,000
Creditors		1,355,000
Loan		2,100,000
Sales		20,000,000
Purchases	8,000,000
Salaries	6,400,000
LegalFees	450,000
Depreciation	800,000
Donations	120,000
Bad Debts	33,000
Travelling	300,000
Loan Interest	133,000
Utilities	375,000
Rent	180,000
TOTAL	29,655,000	29,655,000

Required

1) Prepare the Accounting Profit Statement along with the Profit Adjustment Statement for the Partnership for 2021 and write brief notes to the partners explaining the reason(s) for differences in each of the items included in both statements for taxation purposes.

2) Prepare Capital Allowances computation clearly showing how all the figures were arrived