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Indicate the tax implications for the respective partners of the transactions for the 2018 year of assessment. INFORMATION: Pall and Mall were partners in a partnership business and share profits equally. On 1 June 2017 they admitted a new partner, Peter, to the partnership and also shared profits equally between the three. On 1 November 2017, Chester was admitted to the partnership and profits were also shared equally. The following transactions were recorded for the year ended 30 March 2018.   R 1 May 2017 : Sales to Annhauser 24 000 1 July 2017 : Annhauser debt written off 6 000 1 December 2017 : Recoupment of Annhauser debt 6 000

Indicate the tax implications for the respective partners of the transactions for the 2018 year of assessment. INFORMATION: Pall and Mall were partners in a partnership business and share profits equally. On 1 June 2017 they admitted a new partner, Peter, to the partnership and also shared profits equally between the three. On 1 November 2017, Chester was admitted to the partnership and profits were also shared equally. The following transactions were recorded for the year ended 30 March 2018.   R 1 May 2017 : Sales to Annhauser 24 000 1 July 2017 : Annhauser debt written off 6 000 1 December 2017 : Recoupment of Annhauser debt 6 000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Indicate the tax implications for the respective partners of the transactions for the 2018 year of assessment.

INFORMATION:

Pall and Mall were partners in a partnership business and share profits equally. On 1 June 2017 they admitted a new partner, Peter, to the partnership and also shared profits equally between the three. On 1 November 2017, Chester was admitted to the partnership and profits were also shared equally. The following transactions were recorded for the year ended 30 March 2018.

 

R

1 May 2017 : Sales to Annhauser

24 000

1 July 2017 : Annhauser debt written off

6 000

1 December 2017 : Recoupment of Annhauser debt

6 000
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