Wardle, Jingle and Trotter began trading on 1 October 2018, preparing accounts to 30 September each year

Question:

Wardle, Jingle and Trotter began trading on 1 October 2018, preparing accounts to 30 September each year and sharing profits in the ratio 7:2:1. Results for the first two years of trading are as follows:

image text in transcribed

(a) Compute each partner's trading income for 2018-19, 2019-20 and 2020-21.

(b) Compute each partner's bank interest for 2018-19, 2019-20 and 2020-21.

(c) Compute the gross amount of loan interest on which each partner is charged to tax in 2019-20.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Taxation Finance Act 2020

ISBN: 9781292360713

26th Edition

Authors: Alan Melville

See More Books

Question Posted: Feb 10, 2024 01:01 AM

See More Questions

Wardle, Jingle and Trotter began trading on 1 October 2019, preparing accounts to 30 September each year and sharing profits in the ratio 7:2:1. Results for the first two years of trading are as...
Wardle, Jingle and Tro tter began trading on 1 October 2015 , preparing accounts to 30 September each year and sharing profits in the ratio 7:2:1. Results for the first two years of trading are as...
Ae and Bee commenced in partnership on 1 July 2018 preparing accounts to 30 June. Cae joined as a partner on 1 July 2020. Profits have always been shared equally. The partnerships trading profits...
Examine how effective change communication can reduce resistance in organization ? explain
Synchrolift consist of large elevator platform which can be lowered into water move vertically made by wood and Demonstrate above the wheels that can be lowered to allow positioning of a vessel upon...
Employee performance management systems incorporate appraisal activity, but include other aspects such as a link to organisational objectives, an emphasis on ongoing review, motivation, coaching and...
Service costing is one of the basic methods of operating costing.
Selected financial data from the September 30 year-end statements of Kosanka Company are given below: Total assets . . . . . . . . . . . . . . . . . . . . . . . . . $5,000,000 Long-term debt (12%...
The Hubda Corporation has an expected EBIT of $2 million in perpetuity. The firm has $4 million of debt yielding 8% before taxes. The corporate tax rate is 30%. The equity cost for an unlevered firm...
Cluppins and Raddle form a partnership on 1 November 2016, preparing accounts to 31 May each year. Bardell is admitted as a partner on 1 January 2018. Cluppins leaves the partnership on 28 February...
Dodson and Fogg began trading in equal partnership on 1 July 2017. On 1 July 2018, they admitted Jackson as a partner and agreed to share profits in the ratio 5:4:1. The adjusted trading profits of...
A number of industrial products include gold and silver as a component because they have very good conductive properties. The S& M Smelting Company engages in the recovery of gold from such products...
The manager of a division that produces add-on products for the automobile industry had just been presented the opportunity to invest in two independent projects. The first is an air conditioner for...
Ook ht nces Case 5-2 (Algo) Shouldice Hospital in Canada is widely known for one thing-hernia repair! In fact, that is the only operation it performs, and it performs a great many of them. Over the...
A trunk of cone made of Aluminum (E = 70 GPa) and fixed between two rigid walls and without any preloading or thermal input is uniaxially loaded with a force of magnitude of 100 N at point C (300 mm...
Honeyville Company had sales for the year of $ 1 0 0 , 0 0 0 . Of these sales, only $ 3 0 , 0 0 0 were collected in cash. The other $ 7 0 , 0 0 0 is expected to be collected in cash next year. For...
The company does not have a license for Dynamics 365. If you decide to use a Portal Template how many choices will you have
Discuss how circulation figures are used in evaluating newspapers as part of a media plan and setting advertising rates.
Use Stokes' Theorem to evaluate f(y+sin x) dx+(z+cos y) dy+rdz, where C is the rve r(t) = (sint, cost, sin 2t), t = [0, 2].
The qualitative characteristics of relevance, faithful representation and comparability which are identified in the IASB Conceptual Framework are some of the attributes that make financial...
International standard IAS1 lists seven "general features" relating to the presentation of financial statements. These are: (a) Fair presentation and compliance with international standards (b) Going...
(a) Distinguish between current assets and non-current assets. (b) Distinguish between current liabilities and non-current liabilities. (c) Explain why these distinctions are useful.
Which of the following statements is not true regarding the $500 credit for dependent other than a qualifying child credit. Cannot be claimed on the same tax return if the child tax credit is also...
Grind Co. is considering replacing an existing machine. The new machine is expected to reduce labor costs by $127,000 per year for 5 years. Depreciation on the new machine is $57,000 compared with...
If John invested $20,000 in a stock paying annual qualifying dividends equal to 4% of his investment, what would the value of his investment be 5 years from now? Assume Johns marginal ordinary tax...

Wardle, Jingle and Trotter began trading on 1 October 2018, preparing accounts to 30 September each year

Question:

Trading profit Bank interest received Loan interest received net (net amount) yle 30/9/19 117,460 200 992 yle 30/9/20 136,540 220 1,088

Step by Step Answer:

a Trading profit of 117460 for the year to 30 September 2019 is allocated Wardle 82222 Jingle 23492 ...View the full answer

Taxation Finance Act 2020

Students also viewed these Business questions