Peter and Jill are in a partnership as retailers of electrical goods. The partnership records, exclusive of GST, for this income year disclose:

Receipts ($):

400,000 Gross receipts from trading

Payments ($):

200,000 Purchases of trading stocks

20,000Partners' drawings ($5,000 to Peter and $15,000 to Jill)

4,000 Interests paid to partners' capital contribution ($1,000 to Peter and $3,000 to Jill)

50,000Partners' salaries( $30,000 to Peter and $20,000 to Jill)

2,000 Interest on cash advance made to the partnership by Peter

60,000Salaries for employees and rent paid

2,000 Legal expenses in recovering bad debts

Other details:

Peter and Jill will receive partners' salaries and other benefits according to the partnership's agreement and the remainder will be shared 30% to Peter and 70% to Jill.

Required:

a.Calculate the partnership net income/loss and (4 marks)

b. calculate the allocation to partners.(4 marks)