Question
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
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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