Mutinta and Nyambe are in partnership sharing profits and losses in the ratio of 2 to 3 respectively after allowing for partnership salaries of K40,000 per annum for each. The partnership accounts are prepared annually to 31 December. On 1 April 2021, Mbulo was admitted to the partnership and with effect from that date, the partnership agreement was changed. Profits and losses and partners' annual salaries were to be provided for as given in the table below: Salaries per annum(K) Share of balance of profits and losses | 5 Mutinta Nyambe Mbulo 32,000 30,000 28,000 3 2 The partnership's profit and loss account for the year ended 3 December 2021 was as follows: Note K K Details Gross Profit Less Expenses Wages and salaries Rent and Rates Repairs and Renewals Legal Expenses Motor Car running expenses Depreciation Provision for Income Tax Foreign Exchange loss Net Profit 2 3 4 5 128,650.00 84,290.00 15,880.00 4,215.00 6,250.00 8,150.00 10,180.00 15,000.00 377,470.00 (272,615) 104,855.00 Notes to the profit and loss account for the year ended 31 December 2021 are as follows: Note 1 Included in wages and salaries are the partners' salaries of K12,000 for Mutinta and K5,000 for Nyambe Note 2 One-third of the expenditure on rent and rates relates to rent paid for the houses occupied by the three partners and their families. Note 3 The charge in the profit and loss account includes K3,000 incurred on fitting fire safety equipment in the factory. Note 4 Legal expenses are made up of the following: Mutinta 75% Nyambe 80% Defending action in alleged faulty goods Costs in connection with the acquisition of the new 55-year new lease Defending Mutinta in connection with a speeding offence An appeal against last year income tax assessment Total Note 5 The partners use their private cars in the partnership business. Business mileage as a percentage of total mileage done by each partner together with the total motor car running expenses are given below: Partner Business mileage% Motor Car expenses (K) 2,210 Mbulo 60% Note 6 2,150 K 1,890 6,250 1,150 1,200 865 1,000 4,215 The partnership purchased raw materials from a supplier based in the United States for US$10,000 on 1 June 2021 when the kwacha traded at K20 to US$1. On 31/12/2019 the kwacha traded at K21.50 to $1. Note 7- additional information (see also note 5) The table below provides information about the partner's motor cars referred to in note 6 above: Description Purchase cost (K) into Mutinta's car Nyambe 's car Mbulo car 14,000 15,000 18,000 Date brought business use 1 October 2020 1 November 2020 1 April 2021 Capital allowances on the other assets held by the partnership were K12,000 for the year ended 31 December 2021. REQUIRED: Calculate the partnership's tax-adjusted business profit, and the business profits on which each partner will be assessed for the year ended 31 December 2021. [20 marks]