Ali and Sumara started a retailing shop on a partnership. Each of them contributed $400,000 fund to the business. The partnership agreement provides: Both Ali and Sumara are to receive interest at the rate of 4% pa on their capital contribution. Sumara will receive a salary of $105,000 for the management of the shop, as well as superannuation contributions of $14,600. Wages to employees amounts to $153,000. Superannuation to employees $15,700 The remainder in profit and loss will be shared Ali 45% and Sumara55% The accounts for this income year show the following: Income ($) Sales 1,120,000 Expenses ($) Cost of goods sold 526,000 Interest on capital paid to Ali and Sumara in total 9,000 Salary to Ali 105,000 Concessional Superannuation to Ali 12,000 Rent expense 88,000 Other deductible operating expenses 91,000 Required: Calculate the net income of the partnership. Show the allocation of net income to each of the partners
Ali and Sumara started a retailing shop on a partnership. Each of them contributed $400,000 fund to the business. The partnership agreement provides: Both Ali and Sumara are to receive interest at the rate of 4% pa on their capital contribution. Sumara will receive a salary of $105,000 for the management of the shop, as well as superannuation contributions of $14,600. Wages to employees amounts to $153,000. Superannuation to employees $15,700 The remainder in profit and loss will be shared Ali 45% and Sumara55% The accounts for this income year show the following: Income ($) Sales 1,120,000 Expenses ($) Cost of goods sold 526,000 Interest on capital paid to Ali and Sumara in total 9,000 Salary to Ali 105,000 Concessional Superannuation to Ali 12,000 Rent expense 88,000 Other deductible operating expenses 91,000 Required: Calculate the net income of the partnership. Show the allocation of net income to each of the partners
Chapter21: Partnerships
Section: Chapter Questions
Problem 2BCRQ
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Question
Ali and Sumara started a retailing shop on a
- Both Ali and Sumara are to receive interest at the rate of 4% pa on their capital contribution.
- Sumara will receive a salary of $105,000 for the management of the shop, as well as superannuation contributions of $14,600.
- Wages to employees amounts to $153,000. Superannuation to employees $15,700
- The remainder in
profit and loss will be shared Ali 45% and Sumara55%
The accounts for this income year show the following:
|
Income ($) |
|
|
Sales |
1,120,000 |
|
Expenses ($) |
|
|
Cost of goods sold |
526,000 |
|
Interest on capital paid to Ali and Sumara in total |
9,000 |
|
Salary to Ali |
105,000 |
|
Concessional Superannuation to Ali |
12,000 |
|
Rent expense |
88,000 |
|
Other deductible operating expenses |
91,000 |
Required:
Calculate the net income of the partnership. Show the allocation of net income to each of the partners.
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ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT