Question

Jothi and Johan are partner in a conventional partnership . The following information relates to the partnership for the year ended 31 december 2018 :

	Note	RM	Rm	Rm
Service fee income				690,000
Less:
Business expenses	(1)		50,000
Partners’ salaries-jothi		180,000
Johan		120,000	300,000
				(350,000)
Net profit				340,000

Notes

1. The business expenses included :

		RM
i.	Renovation of office premises	10,000
ii.	depreciation	15,000
iii.	Business travelling	8,000
iv.	Water and electricity	9,000
v.	Approved cash donation	1,000

2. During the year of assessment 2018, the partnership incurred capital expenditures for its business as follows :

		RM
i.	4 sets of computers	4,000 each
ii.	2 sets of photocopiers	2,500 each
iii.	5 sets of tables and chairs	1,000 each

Required : Compute provisional Annual Income , divisible income and capital allowances of the partnership level for year 2018 .

Answer 1

SO the net profit is 3,50,000 we shall be subtracting the expenses to get the divisible profit between the JOTHI &JOHAN.

NOW,

NET PROFIT = 3,40,000

LESS :-

RENNOVATION OF OFFICE= 10,000

DEPRECIATION = 15,000

BUSINESS TRAVELLING = 8,000

WATER AND ELECTRICITY = 9,000

APPROVED CASH DONATION = 1,000

4 SETS OF COMPUTERS =16,000

2 SETS OF PHOTOCOPIERS = 5,000

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5 SETS OF TABLE AND CHAIR = 5,000

NET DIVISIBLE PROFIT = 2,71,000