Taxation of Partnerships. Using Facts, Issues & Law. Jerry and George are equal partners in a business partnership. They are both 22 years old. George works five days a week in the business while Jerry only works on Saturdays. The income and expenses of the partnership are as follows: $ Sales 250 000 Interest 5 000 Expenses Operating costs deductible under s 8-1 75 000 Staff salaries 50 000 George's salary 60 000 Jerry's salary 10 000 Staff superannuation 5 000 George's superannuation 6 000 Jerry's superannuation 1 000 Interest on capital Jerry 2 000 Interest on drawings George 3 000 Consider each transaction and disclose if this should be included in the net income of the partnership. Calculate the net income of the partnership. Using the following table, calculate the partnership distribution of each partner. Item George Jerry Total Salary received Add: Interest on capital Less: Interest of drawings Add: % of distribution Total