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Question 2 (20 Marks) Sheldon Cooper and Leonard Howard are partners in a partnership and they share in profits and losses as follows: Sheldon Cooper: 70% Leonard Howard: 30% The Bookkeeper has prepared and provided you with the following Statement of Profit or Loss and other Comprehensive income in respect of the partnerships 2021 year of assessment: Income R Gross income 500 000 Dividends received (note 2) 4500 Interest from a South African source 6 360 Settlement 19 390 530 250 Less: Expenditure (375_450) Annuities (note 1) 12 000 Retirement annuity fund contributions: 3 000 Sheldon 4 500 Leonard Shares purchased (note 2) 75 000 Sundry deductible expenses 17 900 Delivery van purchased (note 3) 39 600 Donations (note 4) 18 750 Delivery van running expenses 5 500 Rental paid 21 600 Rental paid 21 600 Staff salaries and wages 90 000 Drawings: Sheldon (note 5) 6 600 Salaries paid: 36 000 Sheldon 45 000 Leonard Net profit 154 800 Sheldon (70%) 108 360 Leonard (30%) 46 440 Notes: 1. The following annuities were paid during the year to dependants of two deceased former employees: R Rajesh and his two children 8 400 Stewart 3600 12 000 2. During the 2021 year of assessment, the partners decide to invest their surplus cash funds and they purchased 25 000 shares in Pablo (Pty) Ltd, a company registered in the Republic, at R3 a share. The company paid a dividend of R4 500 to the partnership on 31 December 2020. 3. No depreciation has been provided for in the Statement of Profit or Loss and other Comprehensive Income in respect the delivery van which was purchased on 1 May 2020 for R39 600 (excluding VAT). The approved write-off period for delivery vehicles is four years. 4. During the 2021 year of assessment, the partnership made the following donations: R To a non-public benefit organisation 3750 To a public benefit organisation 15 000 Official receipts were obtained. Sheldon also donated R20 000 in his own name to a qualifying public benefit organisation and obtained the required receipt. 5. Other partnership information (not taken into account in arriving at the net profit of R154 800): Sheldon Leonard Interest on capital 0 20 000 108 000 90 000 Drawings (including the R6 600 deducted in the Statement of Profit or Loss and other Comprehensive income) 6. Both partners are under the age of 65 years. All amounts paid to or on behalf the partners are in accordance with the partnership agreement Required: Calculate taxable income of the partnership for the 2021 year of assessment. Question 2 (20 Marks) Sheldon Cooper and Leonard Howard are partners in a partnership and they share in profits and losses as follows: Sheldon Cooper: 70% Leonard Howard: 30% The Bookkeeper has prepared and provided you with the following Statement of Profit or Loss and other Comprehensive income in respect of the partnerships 2021 year of assessment: Income R Gross income 500 000 Dividends received (note 2) 4500 Interest from a South African source 6 360 Settlement 19 390 530 250 Less: Expenditure (375_450) Annuities (note 1) 12 000 Retirement annuity fund contributions: 3 000 Sheldon 4 500 Leonard Shares purchased (note 2) 75 000 Sundry deductible expenses 17 900 Delivery van purchased (note 3) 39 600 Donations (note 4) 18 750 Delivery van running expenses 5 500 Rental paid 21 600 Rental paid 21 600 Staff salaries and wages 90 000 Drawings: Sheldon (note 5) 6 600 Salaries paid: 36 000 Sheldon 45 000 Leonard Net profit 154 800 Sheldon (70%) 108 360 Leonard (30%) 46 440 Notes: 1. The following annuities were paid during the year to dependants of two deceased former employees: R Rajesh and his two children 8 400 Stewart 3600 12 000 2. During the 2021 year of assessment, the partners decide to invest their surplus cash funds and they purchased 25 000 shares in Pablo (Pty) Ltd, a company registered in the Republic, at R3 a share. The company paid a dividend of R4 500 to the partnership on 31 December 2020. 3. No depreciation has been provided for in the Statement of Profit or Loss and other Comprehensive Income in respect the delivery van which was purchased on 1 May 2020 for R39 600 (excluding VAT). The approved write-off period for delivery vehicles is four years. 4. During the 2021 year of assessment, the partnership made the following donations: R To a non-public benefit organisation 3750 To a public benefit organisation 15 000 Official receipts were obtained. Sheldon also donated R20 000 in his own name to a qualifying public benefit organisation and obtained the required receipt. 5. Other partnership information (not taken into account in arriving at the net profit of R154 800): Sheldon Leonard Interest on capital 0 20 000 108 000 90 000 Drawings (including the R6 600 deducted in the Statement of Profit or Loss and other Comprehensive income) 6. Both partners are under the age of 65 years. All amounts paid to or on behalf the partners are in accordance with the partnership agreement Required: Calculate taxable income of the partnership for the 2021 year of assessment

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