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Pitt partners opened a consulting business on 1 July 2018. The accounting profits and losses are to be shared

equally. The following transactions were recorded in the partnership's cashbook in the year ended 30 June 2019.


Receipts:

Fees received 250,000

Bank loan 75,000

Loan from Angelina 50,000

Interest on drawings - Brad 400

Interest on drawings - Angelina 800  


Payments: 

Rent of the premises and other expenses (all deductible) 40,000

Salaries of employees    100,000

Salary of Brad 35,000

Salary of Angelina 25,000

Superannuation contributions for employees 9,500

Bank loan repayments - principal 15,000

Bank loan repayments - interest 750

Interest on capital - Brad 1,250

Interest on capital - Angelina 1,250

Interest on loan - Angelina 2,500

Drawings - Brad 2,000

Drawings - Angelina 4,000

Penalties and fines 500

Entertainment expenses 2,500


Calculate the following:

a) Income statement under accounting standards and the accounting profit for the year ended 30 June 2019

b) Income statement under tax law and the net income of the partnership for the year ended 30 June 2019

c) Distribution statement for each of the partners for the year ended 30 June 2019

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