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Old MathJax webview kindly help me to solve it that's all the info we have.. can u plz solve the sum? Paula and Marie have
Old MathJax webview
kindly help me to solve it
that's all the info we have.. can u plz solve the sum?
Paula and Marie have been in partnership for many years carrying on a distribution business in Munster, sharing profits and losses 60% and 40% after salaries for Paula of 4,000 and for Marie of 8,000 and interest on their capital accounts of 9,000 for Paula and 12,000 for Marie, and interest on Paula's loan account of 26,000 (loan was used to acquire equipment for the business). Accounts are made up to 30 November each year. On 1 December 2014 Kitty was admitted to the partnership and from that date they share profits and losses in the ratio of 45%, 40% and 15% respectively for Paula, Marie and Kitty, after giving prior salaries and interest on capital accounts as follows: Salaries Interest on Capital Paula 6,000 10,000 Marie 10,000 14,000 Kitty 14,000 16,000 Paula retired on 30 November 2017. From that date Marie and Kitty share profits and losses 75/25 and no salaries or interest on capital accounts arise. None of the three partners or their spouses has any other income apart from their income from the partnership and Kitty had no other income in the year she joined the partnership nor since. The tax adjusted (losses) profits were as follows: Year Ended 30/11/2014 (20,000) 30/11/2015 95,000 30/11/2016 60,000 30/11/2017 80,000 30/11/2018 90,000 Question 2 continued on next page Page 3 of 12 Question 2 continued Capital allowances were: Tax Year 2014 10,000 2015 12,000 2016 14,000 2017 18,000 2018 20,000 Gross patent royalties paid in the year ended 30 November 2018 were 10,000. Gross patent royalties paid in the tax year 2018 were 12,000. Paula, Marie and Kitty are each resident, ordinarily resident and domiciled in Ireland. Required: Disclose the tax adjusted profits/losses and the capital allowances of the several trades of each of the partners for the years 2014 to 2018 inclusive and their charges for the year 2018Step by Step Solution
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