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QUESTION 2 HS architectural partnership prepares its accounts to 31 December. The partnership agreement provides: An annual salary of RM90,000 to Tim and RM60,000 to
QUESTION 2 HS architectural partnership prepares its accounts to 31 December. The partnership agreement provides: An annual salary of RM90,000 to Tim and RM60,000 to Joe Interest on capital per annum of RM 6,000 to Tim and RM4,800 to Joe Joe has the use of a car owned by the partnership for his private purpose Tim and Joe shared profits equally up to 31 March 2019. From 1 April 2019, the profit-sharing ratios changed to 60% for Tim and 40% for Joe The statement of profit and loss of the partnership for the year ended 31 December 2019 is set below: RM RM RM 566,500 Gross profit Less: Business expenses Interest on capital 280,000 Tim Joe 6,000 4,800 10,800 Partners' salaries Tim 90,000 60,000 Joe 150,000 (440,800) 125,700 Net profit before taxation The business expenses are inclusive of. Note 1 Provision of doubtful Car running expense Depreciation RM 8,700 12,000 24,000 2 Notes: 1. The amount for general provision of doubtful. 2. The private use of the car by Joe amounted to 100%. Required: Based on the information given and starting with the net profit before taxation, compute the total income of each partner for the YA 2019. Detailed working of the steps involved in the tax computation must be shown
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