Jenny and Alex are in a partnership as retailers of electrical goods. The partnership records,...
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Accounting
Jenny and Alex are in a partnership as retailers of electrical goods. The partnership records, exclusive of GST, for this income year disclose:
Receipts ($):
450,000
Gross receipts from trading
Payments ($):
150,000
Purchases of trading stocks
40,000
Partners' salaries (each)
3,000
Interest on cash advance made to the partnership by John
50,000
Salaries for employees and rent paid
5,000
Legal expenses in recovering bad debts
Other details:
1 Jenny and Alex share partnership profits equally 2 Trading stock on hand 1 July: $15,000 3 Trading stock on hand 30 June: $25,000 4 Jenny's personal records disclose: 1 Gambling winnings: $5,000 2 Net salary as a part-time instructor (excluding PAYG tax instalments of $3,000): $6,000. 3 Subscription to professional journals: $700 5 Jenny is a member of a private health fund.
Calculate Jenny's taxable income for the income year explaining your treatment of each item in this question
Jenny and Alex are in a partnership as retailers of electrical goods. The partnership records, exclusive of GST, for this income year disclose:
Receipts ($): | |
450,000 | Gross receipts from trading |
Payments ($): | |
150,000 | Purchases of trading stocks |
40,000 | Partners' salaries (each) |
3,000 | Interest on cash advance made to the partnership by John |
50,000 | Salaries for employees and rent paid |
5,000 | Legal expenses in recovering bad debts |
Other details:
Calculate Jenny's taxable income for the income year explaining your treatment of each item in this question
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