Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Wendy and Charles are in partnership operating a restaurant. They share profits and losses in the ratio 7 0 : 3 0 . The following
Wendy and Charles are in partnership operating a restaurant. They share profits and losses in the ratio : The following is the partners income statement for
Wendy and Charles
Income statement for the Year Ending December
$
Operating sales Revenue.......................................................................................
Less Cost of Sales:
Beginning Inventory...
Purchases of Inventory...
Cost of Inventory Available for Sale
Less Ending Inventory...
Cost of Sales..........................................................................................................
Gross Income........................................................................................................
Less Operating Expenses
Electricity...........................................................................
Rates...................................................................................
Delivery Expense...............................................................
Wages and Salaries...
Depreciation of Building and Kitchen Equipment Penalty on GCT for not paying over Tax on time
Total Operating Expenses.................................................................................. Net Operating Income........................................................................................
Additional Information
$ of the delivery expenses were for Wendys private use.
Capital allowances have been computed at $
Charles is years and received pension income of $ per month.
Wendy received professional fees for consultancy work done gross of $
During Wendy and Charles paid estimated tax of $ and $ respectively.
$ of the $ salary was paid to Charles.
You are required to:
a Show the partnership adjusted profit statement and the partners annual returns
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started