and Sumara started a retailing shop on a partnership. Each of them contributed $500,000 fund to the business. The partnership agreement provides: Both Ali and Sumara are to receive interest at the rate of 5% pa on their capital contribution. Sumara will receive a salary of $95,000 for the management of the shop, as well as superannuation contributions of $15,600. The remainder in profit and loss will be shared Ali 70% and Sumara 30% The accounts for this income year show the following: Income ($) Sales 915,000 Expenses ($) Cost of goods sold 326,000 Interest on capital paid to Ali and Sumara in total 9,000 Salary to Ali 95,000 Concessional Superannuation to Ali 12,000 Rent expense 38,000 Other deductible operating expenses 61,000 Required: Calculate the net income of the partnership. Show the allocation of net income to each of the partners.
and Sumara started a retailing shop on a
Both Ali and Sumara are to receive interest at the rate of 5% pa on their capital contribution.
Sumara will receive a salary of $95,000 for the management of the shop, as well as superannuation contributions of $15,600.
The remainder in
The accounts for this income year show the following:
|
Income ($) |
|
|
Sales |
915,000 |
|
Expenses ($) |
|
|
Cost of goods sold |
326,000 |
|
Interest on capital paid to Ali and Sumara in total |
9,000 |
|
Salary to Ali |
95,000 |
|
Concessional Superannuation to Ali |
12,000 |
|
Rent expense |
38,000 |
|
Other deductible operating expenses |
61,000 |
Required:
Calculate the net income of the partnership. Show the allocation of net income to each of the partners.
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