Mrs$.$ Shine was registered in Jamaica as a sole trader in $2015.$ To grow her practice Mrs$.$ Shine decided to enter into a partnership agreement with Mr$.$ Rain, thus the status of the business was changed in $2021.$

In $2022,$ the partnership income statement for Shine & Rain was as follows:

Income Statement for the year ended $31$ December $2022$

$ $

Revenue $11,600,000$

Expenses

Salaries & Wages $7,600,000$

Employer NIS Contribution $1,400,000$

Rent and Rates $2\mathrm{.}400,000$

Interest $500,000$

Maintenance $120,000$

Depreciation $550,000$

Loss on Disp

$.$

$$Shine was registered in Jamaica as a sole trader in

$2$

$0$

$1$

$5$

$.$

$$To grow her practice Mrs

$.$

$$Shine decided to enter into a partnership agreement with Mr

$.$

$$Rain$,$ thus the status of the business was changed in

$2$

$0$

$2$

$1$

$.$

$$In

$2$

$0$

$2$

$2$

$,$

$$the partnership income statement for Shine & Rain was as follows: Income Statement for the year ended

$3$

$1$

$$December

$2$

$0$

$2$

$2$

$.$

Revenue

$$

$1$

$1$

$,$

$6$

$0$

$0$

$,$

$0$

$0$

$0$

$$Expenses

Salaries & Wages

$7$

$,$

$6$

$0$

$0$

$,$

$0$

$0$

$0$

$,$

$$Employer NIS Contribution

$1$

$,$

$4$

$0$

$0$

$,$

$0$

$0$

$0$

$,$

Rent and Rates

$2$

$.$

$4$

$0$

$0$

$,$

$0$

$0$

$0$

$,$

$$Interest

$5$

$0$

$0$

$,$

$0$

$0$

$0$

$,$

$$Maintenance

$1$

$2$

$0$

$,$

$0$

$0$

$0$

$,$

Depreciation

$5$

$5$

$0$

$,$

$0$

$0$

$0$

$,$

Loss on Disposal of Vehicle

$8$

$0$

$,$

$0$

$0$

$0$

$,$

Telephone

$2$

$3$

$5$

$,$

$0$

$0$

$0$

$,$

Electricity

$2$

$5$

$5$

$,$

$0$

$0$

$0$

$,$

General Expenses

$7$

$0$

$0$

$,$

$0$

$0$

$0$

$,$

$$Donations

$8$

$5$

$,$

$0$

$0$

$0$

$,$

$$Provision for Bad Debts

$8$

$0$

$,$

$0$

$0$

$0$

$,$

Fines and Penalties

$1$

$1$

$5$

$,$

$0$

$0$

$0$

$,$

$$Drawings

$1$

$0$

$5$

$,$

$0$

$0$

$0$

$,$

$$Net Loss

$2$

$,$

$6$

$2$

$5$

$,$

$0$

$0$

$0$

$.$

$$Notes to the Income Statement

$1$

$.$

$$$

$5$

$5$

$,$

$0$

$0$

$0$

$$of the drawings relate to Mrs

$.$

$$Shine and $

$5$

$0$

$,$

$0$

$0$

$0$

$$to Mr

$.$

$$Rain

$2$

$.$

$$Gross Salary for Mrs

$.$

$$Shine was $

$2$

$5$

$0$

$,$

$0$

$0$

$0$

$$per month, and $

$2$

$0$

$0$

$,$

$0$

$0$

$0$

$$for Mr

$.$

$$Rain$.$ Both partners worked in the business during the year.

$3$

$.$

The annual allowance was $

$4$

$5$

$0$

$,$

$0$

$0$

$0$

$.$

$4$

$.$

The partners agreed to dispose of an old pick

$-$

up truck with a net book value of $

$3$

$5$

$0$

$,$

$0$

$0$

$0$

$$for $

$4$

$0$

$0$

$,$

$0$

$0$

$0$

$.$

$$The pick

$-$

up had a tax written down value of $

$3$

$0$

$0$

$,$

$0$

$0$

$0$

$.$

$5$

$.$

$$Donations of $

$6$

$0$

$,$

$0$

$0$

$0$

$$were made to a local political party to fund its campaign. The remainder was donated to an approved local children's home.

$6$

$.$

$$The partners could not determine if all their clients would be able to settle their bills on time so a general provision of $

$6$

$0$

$,$

$0$

$0$

$0$

$$was made to cushion the effect of the any debt going bad. The balance related to a particular client that had gine bankrupt, which the firm was unable to collect after several attempts.

$7$

$.$

$$Fines and Penalties include traffic offences of $

$5$

$,$

$0$

$0$

$0$

$$and penalties of $

$1$

$0$

$,$

$0$

$0$

$0$

$$for nonfiling of VAT returns for the periord January

$-$

March

$2$

$0$

$2$

$2$

$.$

$8$

$.$

$$Interest accured was $

$5$

$0$

$,$

$0$

$0$

$0$

$$for the year.

$9$

$.$

$$The patnership agreement stated that the partners are to share profit and loss in the ratio

$6$

$0$

:

$4$

$0$

$($

Shine

$6$

$0$

$\%$

$$and Rain

$4$

$0$

$\%$

$)$

$.$

$1$

$0$

$.$

$$Mrs

$.$

$$Shine is a director for a local company and receives net emoluments of $

$2$

$,$

$2$

$5$

$0$

$,$

$0$

$0$

$0$

$$per annum; PAYE of $

$7$

$5$

$0$

$,$

$0$

$0$

$0$

$$was deducted.

$1$

$1$

$.$

$$During the year Mrs

$.$

$$Shine rented her private dwelling for $

$1$

$5$

$0$

$,$

$0$

$0$

$0$

$$per month for

$8$

$$months$.$ She also received gross income from teaching law at a university of $

$6$

$,$

$0$

$0$

$0$

$,$

$0$

$0$

$0$

$$per year.

$1$

$2$

$.$

The partners each paid estimated obligations of $

$2$

$0$

$,$

$0$

$0$

$0$

$$per quarter on March

$1$

$5$

$,$

$$June

$1$

$5$

$,$

$$September

$1$

$5$

$$and December

$1$

$5$

$.$

$1$

$3$

$.$

Mr

$.$

$$Rain received interets income from his financial institution of $

$1$

$5$

$0$

$,$

$0$

$0$

$0$

$$for the year. Mrs

$.$

$$Shine received interest income of $

$7$

$5$

$,$

$0$

$0$

$0$

$.$

$1$

$4$

$.$

$$PAYE deducted from Mrs

$.$

$$Shine salary from practice was $

$3$

$5$

$2$

$,$

$4$

$7$

$6$

$$and $

$1$

$0$

$9$

$,$

$4$

$7$

$6$

$$for Mr