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    1) The net profit from the P&L statement was RM345,584. Non-business income and expenses were calculated to arrive at a provisional adjusted income of RM529,024. 2) Partnership expenses were deducted from the provisional adjusted income to get a divisible income of RM330,984. 3) The divisible income, partnership salaries, interest on capital, EPF contributions, and personal expenses were allocated to the three partners Adam, Bazli and Chong based on their profit sharing ratios of 50%, 25%, and 25% respectively to determine their total incomes.

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    1) The net profit from the P&L statement was RM345,584. Non-business income and expenses were calculated to arrive at a provisional adjusted income of RM529,024. 2) Partnership expenses were deducted from the provisional adjusted income to get a divisible income of RM330,984. 3) The divisible income, partnership salaries, interest on capital, EPF contributions, and personal expenses were allocated to the three partners Adam, Bazli and Chong based on their profit sharing ratios of 50%, 25%, and 25% respectively to determine their total incomes.

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    9 views2 pages

    Untitled

    Uploaded by

    Nur Asnadirah
    1) The net profit from the P&L statement was RM345,584. Non-business income and expenses were calculated to arrive at a provisional adjusted income of RM529,024. 2) Partnership expenses were deducted from the provisional adjusted income to get a divisible income of RM330,984. 3) The divisible income, partnership salaries, interest on capital, EPF contributions, and personal expenses were allocated to the three partners Adam, Bazli and Chong based on their profit sharing ratios of 50%, 25%, and 25% respectively to determine their total incomes.

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    of 2

    QUESTION 3(a)

    Net Profit as per P&L 345,584


    Less: Non business income
    Dividend (45000)
    Rental (28,000) (73,000)
    Add: Non allowable expenses
    Depreciation 50,000
    Donation 7,000
    Entertainment (50% x 18000) 9,000
    General bad debts 2,000
    Partnership expenses:
    Salaries -
    Adam (3500 x12) 42,000
    Bazli (4000 x 12) 48,000
    Chong (4000 x 12) 48,000 138,000
    Interest on capital -
    Adam (50000 x10%) 5,000
    Bazli (30000 x 10%) 3,000
    Chong (30000 x 10%) 3,000 11,000
    EPF-
    Adam (3500 x12 x 12%) 5,040
    Bazli (4000 x 12 x 12%) 5,760
    Chong (4000 x 12 x 12%) 5,760 16,560
    Partner’s drawing / Personal expenses:
    Catering cost 21,600
    Leave passage 5,600
    Van running expenses
    (20% x 6400) - Bazli 1,280
    Computer- Adam’s daughter 4,000 266,040
    538,624
    Less: Double deduction
    Salary of disabled clerk (800 x 12) (9,600)
    Provisional adjusted income 529,024
    Less: Partnership expenses
    Salaries 138,000
    Interest on Capital 11,000
    EPF 16,560
    Partner’s drawing/ Personal expenses 32,480 (198,040)
    Divisible income 330,984

    5
    QUESTION 3(b)
    Adam Bazli Chong
    Ratio 50% 25% 25%
    RM RM RM
    Allocation of business:
    Divisible income *W1 165,492 82,746 82,746
    Salaries 42,000 48,000 48,000
    Interest on capital 5,000 3,000 3,000
    EPF 5,040 5,760 5,760
    Partner’s Personal expenses:
    Catering cost – Adam’s dinner 21,600 - -
    Leave passage- Chong - - 5,600
    Van running expenses – Bazli
    (20% x 6400) - 1,280 -
    Computer- Adam’s daughter 4,000 - -
    Adjusted business income 243,132 140,786 145,106
    Add: Balancing charge (W1) 750 375 375
    Less: Capital allowance (W1) (2,500) (1,250) (1,250)
    Business statutory Income 241,382 139,911 144,231
    Add: Other Income:
    Dividend exempted exempted exempted
    Rental 14,000 7,000 7,000
    Aggregate Income 255,382 146,911 151,231
    Less: Approved Donation (3,500) (1,750) (1,750)
    TOTAL INCOME 251,882 145,161 149,481

    W1:

    Adam Bazli Chong


    50% 25% 25%
    Divisible income - 330,984 165,492 82,746 82,746
    Balancing charge – 1500 750 375 375
    Capital Allowance – 5000 2,500 1,250 1,250
    Approved Donation -7000 3,500 1,750 1,750
    Rental - 28000 14,000 7,000 7,000

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