12. Partnership

12. Partnership - (b The 2 provision is made by reference...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
TQ_U12_Partnership 1 BUSI 0018 – Hong Kong Taxation Tutorial Questions Unit 12 – Partnership Question 29 Mr. X and Mr. Y are partners of XY & Co. The profit and loss accounts of the firm for the year ended 31 March 2010 is as follows: $ $ Gross profit 160,000 Less: Salaries & wages (including $15,000 to Mr. X and $5,000 to Mrs. Y) 50,000 Rent for office premises paid to Mr. X (rateable value: $20,000 - for Mr. X's private property) 24,000 Water & electricity 3,000 Fine 4,260 General provision for bad debts (2% on debtors) 4,000 Depreciation 25,000 Sundry expenses 10,340 120,600 39,400 Profits credited to partners' current accounts: Mr. X 19,700 Mr. Y 19,700 39,400 Additional information: (a) Mr. X and Mrs. Y worked for the firm on full time basis. Estimated salaries for same services are actually more than those paid and charged as above.
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: (b) The 2% provision is made by reference to prior years’ performance of debtors payments. In fact, trade debts owing by two debtors amounting to $8,000 are long outstanding despite repeated legal actions have been taken but still in vain. This amount is not yet charged to the accounts as shown above. (c) Sundry expenses include cost of purchase of loose tools/utensils for $5,000, 70% of which relates to replacement of those worn out during the year. Other sundry expenses are allowable. (d) Depreciation allowance was calculated to be $44,375. (e) Only Mr. X elects personal assessment for the year. Required: Compute the 2009/10 profits tax payable by the partnership (ignore tax relief and provisional tax). Check Figures: Assessable profit: $41,785 Profits tax payable: $2,384...
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern