Answered step by step
Verified Expert Solution
Question
1 Approved Answer
J Trust and A Pty Ltd formed a partnership to operate a business. The Partnership is 50/50 and all partnership income is split equally. The
J Trust and A Pty Ltd formed a partnership to operate a business. The Partnership is 50/50 and all partnership income is split equally. The Partnerships Financial Accountant provided you with the following profit and loss statement.
Determine Partnership Income
Determine Partnership Distribution
Determine Tax Payable by Company assume no other
income
Determine most beneficial way to distribute trust income
assume Beneficiary A other income $250,000 , Beneficiary B and C other income $10,000 each
PARTNERSHIP PROFIT AND LOSS
Income
Sales. $ 550000
Interest. $ 5000
Industry Prize. $ 10000
Total Income. $ 565000
Cost of Goods Sold
Opening Stock. $20000
Purchases. $ 100000
Closing Stock. 50000
Total Cost of Goods Sold. 70000
Gross Profit. 495000
Expenses. $
Employee Wages. 45000
Interest on Partnership loans 85000
Staff Entertainment expenses 1000
Rent. 45000
Total Expenses. 99500
NET Profit. 395500
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Survey of Accounting
Authors: Edmonds, old, Mcnair, Tsay
2nd edition
9780077392659, 978-0-07-73417, 77392655, 0-07-734177-5, 73379557, 978-0073379555
