Annie and Brad are partners in the A&B Accounting Practice, located in Hawthorn. The partnership's...
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Accounting
Annie and Brad are partners in the A&B Accounting Practice, located in Hawthorn. The partnership's accounting profit for the year ending 30 June 2020 was $150,000 after the following items were expensed: Interest paid on an advance from Brad $5,000 Salary paid to Annie $21,000 The partnership agreement provides that the partners are share profits and losses equally after allowing for salaries and interest on partners' capital accounts. Required: a) Calculate the net income of the partnership for the year ending 30 June 2020 as defined section 90 of the Income Tax Assessment Act 1936. b) Prepare a statement showing the distribution of the net income of the partnership to each partner for the year ending 30 June 2020. Cite relevant legislation to support of your
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