Question
K & Co, a partnership between Koh, Lee and Min, who contribute capital of RM40,000 each. The profit sharing ratio among Koh, Lee and Min
K & Co, a partnership between Koh, Lee and Min, who contribute capital of RM40,000 each. The profit sharing ratio among Koh, Lee and Min is 2:1:1
The following were included in arriving at net profitof RM100,000 for the year ended 31 December 2019 as follows:
Note | RM | RM | |
Investment in shares | 4,000 | ||
Cash donation to approve organization | 900 | ||
Non trade debtwritten off | 10,000 | ||
Depreciation | 5,000 | ||
Partners salary - Koh | 84,000 | ||
Lee | 60,000 | ||
Min | 60,000 | ||
Interest on capital Koh | 1,600 | ||
Lee | 1,600 | ||
Min | 1,600 | ||
Private expenses Koh | 2,000 | ||
Lee | 1,000 |
Note
Capital allowance for the partnership for the year 2019 is RM28,000
REQUIRED:
Compute the provisional adjusted income and divisible income of the partnership for the year ended 31 December 2019.
Compute the total income of each three partner for the year ended 31 December 2019
State the type of form, deadlineand the personresponsible to submitthe income tax return form to the Inland Revenue Board for the year of assessment 2019.
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