Question 3 Adrian and Bryan are partners in their partnership business as suppliers of various magazines to bookshops. The terms of agreement for the partnership until 30 June 2021 were as follows: Interest on capital per Salary per month (RM) Share of profit / annum (RM) (loss) Adrian 7,500 5,000 60% Bryan 6,000 4.000 40% On 30 June 2021, Bryan withdrew from the partnership and transferred his ownership to Kent. The new terms of agreement for the partnership with effect from 1 July 2021 were as follows: Interest on capital per Salary per month (RM) Share of profit/loss) annum (RM) Adrian 7,500 5.000 50% Kent 6,000 3,000 50% The statement of profit or loss for the partnership for the year ended 31 December 2021 is as follows: RM RM RM Sales 800,000 Less: Cost of sales (350,000) 450,000 Less: Unapproved donations 2.000 Entertainment 60,000 Depreciation 15,000 Partners' salary - Adrian 60,000 - Bryan 24,000 - Kent 18,000 102,000 Partners interest on capital - Adrian 7,500 - Bryan 3.000 - Kent 3.000 13,500 Adrian : medical expenses 7,000 General expenses (allowable) 30,000 229.500 Net profit 220.500 Capital allowance for the year of assessment 2021 is RM28,000. Required: Compute the provisional adjusted income and divisible income for the partnership for the year of assessment 2021. (6 marks) (b) Compute the statutory income for Adrian, Bryan and Kent from the partnership for the year of assessment 2021. (7 marks) (c) For a partnership, state the deadline, type of retum form and the person responsible to submit the return form to the Inland Revenue Board for the year of assessment 2021. (3 marks) (d) Explain the tax treatment for the expenses of unapproved donations and entertainment. (4 marks) [Total: 20 marks) Question 3 Adrian and Bryan are partners in their partnership business as suppliers of various magazines to bookshops. The terms of agreement for the partnership until 30 June 2021 were as follows: Interest on capital per Salary per month (RM) Share of profit / annum (RM) (loss) Adrian 7,500 5,000 60% Bryan 6,000 4.000 40% On 30 June 2021, Bryan withdrew from the partnership and transferred his ownership to Kent. The new terms of agreement for the partnership with effect from 1 July 2021 were as follows: Interest on capital per Salary per month (RM) Share of profit/loss) annum (RM) Adrian 7,500 5.000 50% Kent 6,000 3,000 50% The statement of profit or loss for the partnership for the year ended 31 December 2021 is as follows: RM RM RM Sales 800,000 Less: Cost of sales (350,000) 450,000 Less: Unapproved donations 2.000 Entertainment 60,000 Depreciation 15,000 Partners' salary - Adrian 60,000 - Bryan 24,000 - Kent 18,000 102,000 Partners interest on capital - Adrian 7,500 - Bryan 3.000 - Kent 3.000 13,500 Adrian : medical expenses 7,000 General expenses (allowable) 30,000 229.500 Net profit 220.500 Capital allowance for the year of assessment 2021 is RM28,000. Required: Compute the provisional adjusted income and divisible income for the partnership for the year of assessment 2021. (6 marks) (b) Compute the statutory income for Adrian, Bryan and Kent from the partnership for the year of assessment 2021. (7 marks) (c) For a partnership, state the deadline, type of retum form and the person responsible to submit the return form to the Inland Revenue Board for the year of assessment 2021. (3 marks) (d) Explain the tax treatment for the expenses of unapproved donations and entertainment. (4 marks) [Total: 20 marks)
