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Jaja, Jiji and Juju are partners in a firm. They agreed to divide profit or loss equally and accounting period ended on 31 Dec every

Jaja, Jiji and Juju are partners in a firm. They agreed to divide profit or loss equally and accounting period ended on 31 Dec every year.

On 1 Oct 2006, they changed to allocate profit or loss in proportion of 2:2:1.

The partners income up to 30 Sept 2006 were as follows :

Jaja (RM)

Jiji (RM)

Juju (RM)

Salary (p.a)

Interest on capital (p.a)

40 000

5 000

40 000

7 000

30 000

4 000

From Oct 1, 2003, they agreed to change the following terms :

Jaja (RM)

Jiji (RM)

Juju (RM)

Salary (p.a)

Interest on capital (p.a)

55 000

5 000

55 000

7 000

70 000

4 000

The provisional adjusted income for the year ended Dec 31, 2006 were RM460 000. The capital allowance in respect of the partnership assets were RM70 000.

The partnership made a cash donation of RM9 000 to approved institution on January 2006.

Required: Compute the statutory income for each partners for YA 2006.

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