Question 2 TYT Partnership is established by Teesha and Yeen in January 2018. Teesha contributes RM50,000 to the capital of the partnership while Yeen contributes 4 of Teesha's capital contribution. The interest on capital allocated for each partner is 8% per annum. The partners agreed to share the profit and losses equally. Teesha's salary per month is RM7,500 and is expected to increase 12% starting July 2020. The partnership's trading, profit and loss account for the year ended 31.12.2020 was as follows: RM 1,216,000 (607,000) 609,000 Sales proceeds Less: Cost of sales Gross profit Less: Business expenses Net profit for the year Additional information: a) Included in the sales proceeds is gain on machine disposal RM2,050. b) Items incurred in the business expenses: • Weekly house cleaning for Teesha costing RM5,200; Maxis Wi-Fi deposit for office premise RM530; (344,100) 264,900 • Purchased office printer RM3,000. Assumed printer is considered as office equipment; Partners' salary RM167,400 and partners' interest on capital. c) Qualifying expenditure for plant and machinery at the end of the year is RM76,000. Required: Calculate the statutory income of each partner from the partnership for the Year of Assessment 2020.
Question 2 TYT Partnership is established by Teesha and Yeen in January 2018. Teesha contributes RM50,000 to the capital of the partnership while Yeen contributes 4 of Teesha's capital contribution. The interest on capital allocated for each partner is 8% per annum. The partners agreed to share the profit and losses equally. Teesha's salary per month is RM7,500 and is expected to increase 12% starting July 2020. The partnership's trading, profit and loss account for the year ended 31.12.2020 was as follows: RM 1,216,000 (607,000) 609,000 Sales proceeds Less: Cost of sales Gross profit Less: Business expenses Net profit for the year Additional information: a) Included in the sales proceeds is gain on machine disposal RM2,050. b) Items incurred in the business expenses: • Weekly house cleaning for Teesha costing RM5,200; Maxis Wi-Fi deposit for office premise RM530; (344,100) 264,900 • Purchased office printer RM3,000. Assumed printer is considered as office equipment; Partners' salary RM167,400 and partners' interest on capital. c) Qualifying expenditure for plant and machinery at the end of the year is RM76,000. Required: Calculate the statutory income of each partner from the partnership for the Year of Assessment 2020.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
Question
Transcribed Image Text:Question 2
TYT Partnership is established by Teesha and Yeen in January 2018. Teesha contributes
RM50,000 to the capital of the partnership while Yeen contributes 4 of Teesha's capital
contribution. The interest on capital allocated for each partner is 8% per annum. The partners
agreed to share the profit and losses equally. Teesha's salary per month is RM7,500 and is expected
to increase 12% starting July 2020.
The partnership's trading, profit and loss account for the year ended 31.12.2020 was as follows:
RM
1,216,000
(607,000)
609,000
Sales proceeds
Less: Cost of sales
Gross profit
Additional information:
a) Included in the sales proceeds is gain on machine disposal RM2,050.
b) Items incurred in the business expenses:
• Weekly house cleaning for Teesha costing RM5,200;
●
Maxis Wi-Fi deposit for office premise RM530;
●
Less: Business expenses
Net profit for the year
●
Purchased office printer RM3,000. Assumed printer is considered as office equipment;
Partners' salary RM167,400 and partners' interest on capital.
c) Qualifying expenditure for plant and machinery at the end of the year is RM76,000.
(344,100)
264,900
Required:
Calculate the statutory income of each partner from the partnership for the Year of Assessment
2020.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 4 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education