TAX301 Tutorial Q2 1 Jamuna, Loges and Rosemary opened a beauty parlour It was agreed that Rosemary and Loges would manage the operations of the centre and receive a fixed salary each month of RM3,000 whilst Jamuna would receive only a percentage of the profits The capital that each has introduced to the partnership is RM120,000 Interest on capital was agreed at 7 p a The profits were to be shared equally On the 31 st of May 2021, Rosemary left the partnership and Jayanthi joined the partnership with RM80,000 Jayanthi was paid a salary of RM2,000 and profits were shared thereon at 40 40 20 Details of the partnerships income statement for the year ended 31 December 2021 were as follows RM Turnover 565,000 Less cost of sales 135,000 Gross profit 430,000 Administration expenses 175,000 Net profits 255,000 Within the administrative expenses were Salary 66,000 Interest on Capital 15,400 Depreciation 33,000 Capital allowances for the period is RM42,000 Jamuna has a brought forward business loss of RM12,000 from the year of assessment 2020 She runs a travel agency as a sole proprietor During the year of assessment 2021, the business made an adjusted gain of RM9,000 Required Compute the divisible partnership income or loss for Jamuna Loges, Rosemaryand Jayanthi, and also the total income of each partner for the year of assessment 2021

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TAX301 Tutorial Q2.1. Jamuna, Loges and Rosemary opened a beauty parlour. It was agreed that Rosemary and Loges would manage the operations of the centre

TAX301 Tutorial

Q2.1.

Jamuna, Loges and Rosemary opened a beauty parlour. It was agreed that Rosemary and Loges would manage the operations of the centre and receive a fixed salary each month of RM3,000 whilst Jamuna would receive only a percentage of the profits.

The capital that each has introduced to the partnership is RM120,000. Interest on capital was agreed at 7% p.a. The profits were to be shared equally. On the 31^st of May 2021, Rosemary left the partnership and Jayanthi joined the partnership with RM80,000. Jayanthi was paid a salary of RM2,000 and profits were shared thereon at 40%:40%:20%.

Details of the partnerships income statement for the year ended 31 December 2021 were as follows:

Turnover 565,000

Less: cost of sales 135,000

Gross profit 430,000

Administration expenses* 175,000

Net profits 255,000

*Within the administrative expenses were:

Salary 66,000

Interest on Capital 15,400

Depreciation 33,000

** Capital allowances for the period is RM42,000

Jamuna has a brought forward business loss of RM12,000 from the year of assessment 2020. She runs a travel agency as a sole proprietor. During the year of assessment 2021, the business made an adjusted gain of RM9,000.

Required:

Compute the divisible partnership income or loss for Jamuna Loges, Rosemaryand Jayanthi, and also the total income of each partner for the year of assessment 2021.