Old MathJax webview

Old MathJax webview

naina, Mogire and Barasa are partners operating a supermarket in Subukia town. 2018, the partners reported a loss of Sh. 4,425,000 after deducting the following: share profits and looses in the ratio of 2:2:1 respectively. During the year ended 31 Interest on Capital: Wainaina Mogire Barasa 232,000 232,000 348,000 I noel back Salaries to Partners: Wainaina Mogire Barasa 400,000 7 Acid 420,000 576,000 bauce 304,000 96,000 240,000 400,000 600,000 170,000 136,000 Motor Vehicle running expense: Repairs and Maintenance Office expenses Goodwill Loss on investment Postage and Telephone Water and electricity Subscription to the Kenya National Chamber Of Commerce Salaries and Wages Donations Bad debts written off Rent, rates & licences Professional fees Depreciation Purchase of lorry Dividend received (net) Insurance recovery on motor vehicle 128,000 712,000 300,000 346,000 160,000 969,000 1,760,000 1,331,000 264,000 520,000 Notes: 1. Office expenses included cost of office cabinet of Sh. 110,000. 2. Travelling expenses amount to Sh. 120,000 per month related to personal use. 3. Mogire had taken goods worth Sh. 70,000 for his own use. 4. Wear and tear allowances agreed with the commission amounted to Sh, 706,000. 5. Included in repairs and maintenance is Sh. 80,000 paid for office partitions in 2018. 6. Provision for bad and doubtful debts account. Bad debts 246,000 Specific (c/f) General (c/f) 246,000 192,000 390,000 828,000 General (b/f) Specific (c/f) Profit & Loss Account 330,000 152.000 346,000 828,000 Required: i) ii) The taxable profit(loss) from the Partnership business as at 31.12.2018 Distribution schedule among the partners as at 31.12.2018. Tax payable by each partner. (15 mark I Total 25 m