Gorata and Thato are in partnership sharing profits and losses in the ratio 2:3 respectively. Their income statement for the year ended 31 December 2014 showed a net profit of 950 000.

The following information is available:

Included in their income are the following:

Profits on sale of non-current assets 45 000

BSB interest 42 000

Dividends received from Botswana companies (net) 64 000

Expenses deducted in the income statement were:

Depreciation on non-current assets 80 000

Interest on capital: Gorata 60 000

Thato 54 000

Interest on current accounts: Gorata 11 000

Thato 9 000

Salaries: Gorata 80 000

James 95 000

Additional information:

During the year the partnership purchased the following assets:

Office furniture 300 000

BMW 320d 400 000

Gorata borrowed the amount she used to purchase her share in the partnership practice and paid 3 500 interest.

The partners contributed the following amounts to approved pension funds:

Gorata 40 000

Thato 36 000

Required:

Calculate the partnership chargeable income and the taxable income of the individual partners including the tax payable (if any) (25 marks