NB!! South African Tax

QUESTION 2 (30 Marks) Dean (54 years) operated a satellite plumbing business as a sole proprietor. On I April in the current year of assessment, he decided to enter into a partnership agreement with Jason (38 years). They agreed to share profits on a 50:50 ratio. The following income and expense items for the current year of assessment relate to the partnership: Income Gross income Irrecoverable debts recovered (Note I) Expenses Sundry expenses (deductible for tax purposes) Administrative expenses Depreciation (Note 2) Salaries: Dean Jason Other employees Retirement annuity fund: Dean (Note 3) Jason (Note 3) Provident fund: Other employees (Note 4) Drawings Dean Bad debts (Note 5) Additional Information: I. Irrecoverable debts recovered 1 860 000 1 830 OOO 30 ooo 1 773 100 384 900 112 000 148 600 450 000 360 000 156 ooo 52 600 30 000 38 600 28 400 12 000 The irrecoverable debts recovered relates to R30 000 for debtors brought into the partnership by Jason.