Memey and Kiki formed a partnership, where they named the firm Glow & Beauty. At the beginning of the partnership, they both agreed that profits and losses were shared equally between partners. The accounting year end for Glow & Beauty is 30 June. Given below is the profit and loss account of Glow & Beauty for the year ended 30 June 2020:

	RM
Gross Profit	180,000
Less:
Salaries (including partners’ salary)	98,400
Advertising expense	20,000
Office Rental	12,000
Postage and stationery	500
Interest on partners’ capital	7,000
Depreciation	1,200
Repair of office equipment	1,800
Renovation of office premises	6,000
	(146,900)
Net Profit	33,100

additional information:

included in advertising expense is a personal expense of RM1,200 incurred by Memey and a donation of RM1,000 made by the firm to an approved organisation on 11 March 2020. On 1 October 2020, Glow & Beauty welcomed a new partner, Luna. Hence, the profit sharing arrangement among the partners has been revised beginning 1 October 2020. The profit sharing arrangements among the partners are as follows

Profit sharing arrangement	Memey RM	Kiki RM	Luna RM
up to 30 September 2020:
partners’ salaries per annum	48,000	36,000
interest on capital per annum	3,000	4,000
Profit sharing ratio	0.5	0.5
from 1 October 2020 and onwards:
partners’ salaries per annum	60,000	48,000	36,000
interest on capital per annum	3,600	5,000	6,000
Profit sharing ratio	0.5	0.25	0.25

Provisional adjusted income for the year ended 30 June 2021 is RM 230,000. Included in the computation of provisional adjusted income is a personal expense of RM1,300 incurred by Memey on 2 August 2020 and a donation of RM1,800 made by the firm to an approved organisation on 11 November 2020. Capital allowances due on the firm’s assets are RM 800 and RM 1,200 for the year of assessment 2020 and 2021 respectively.

Dikehendaki / Required:

a) Briefly explain how a partnership is assessed for income tax purpose and who is responsible for filing of the partnership return.

b) Calculate the divisible income of the partnership for the year ended 30 June 2020 and 30 June 2021.

c) Calculate the adjusted income, capital allowance and approved donation allocated to each partner for the year ended 30 June 2020 and 30 June 2021.