Calculate the provisional adjusted income-loss

Assignment Help Accounting Basics

Reference no: EM133921855

Problem

A partnership consists of three partners Ali, Chan and Siva who contributed capital of RM50.000 each. Interest is payable at 6.5% per annum based on capital contributed. It is made payable to the partners half- yearly. Each partner is entitled to draw salary in proportion to his capital contribution. The profits/loss ratio for the partners is in proportion to their capital contributions.

For the year ended 31 December 2012, the partnership made a loss of RM200,000 after charging the following:

                                 RM                       RM
Partners' salaries                                    168,000
Interest on capital                                  11,375
Ali                             24,000
Chan                           24,000
Siva                            36,000
                                                            84,000
Depreciation                                           30,000

Notes

1. Capital allowances for the year amount to RM45.000.
2. On 1July 2012, Siva increased his capital contribution to RM100,000.

Task

I. Calculate the provisional adjusted income/loss and divisible income/loss in respect of the partnership for the year ended 31 December 2012. Get the instant assignment help.

II. Calculate the adjusted partnership income/loss for each partner and the capital allowances due to each partner for the year of assessment 2012.

Reference no: EM133921855

Questions Cloud

What specific safeguards could have been implemented : If a familiarity threat existed between KPMG partners and Basis Capital. What specific safeguards could have been implemented to ensure auditor independence?

Calculate the correct inventory balance at september thirty : Calculate the correct inventory balance at September 30, 2028. For each of the above items, explain the basis of your treatment of the item.

Determine amount of cash that should be paid to each partner : Liquidation-Cash distribution computation, safe payments schedule. Determine the amount of cash that should be paid to each partner.

Explain how you would use each source of information : Explain how you would use each source of information to develop an understanding of the client's operations, financial position, and environment.

Calculate the provisional adjusted income-loss : Calculate the provisional adjusted income/loss and divisible income/loss in respect of the partnership for the year ended 31 December 2012.

What is standard period of limitation for internal revenue : According to Section 203 of the NIRC, what is the standard period of limitation for internal revenue tax assessment for failure to file returns?

What is the cost of goods sold : Riverside Distributors reported the following inventory- related transactions for the current fiscal year. What is the Cost of Goods Sold (COGS)?

What is amount of bad debt expense to be recorded for year : Elite Electronics uses the allowance method to account for bad debts. What is the amount of bad debt expense to be recorded for the year?

What is the total labor budget variance for claire company : Standard direct labor rate per hour P15.00 Actual direct labor rate per hour P13.50. What is the total labor budget variance for Claire Company?

User Account

All Pages