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- 7 Marks
Question
a) During the year ended 31 December 2018, the partnership of David, Stella, and Percy reported an adjusted profit of GH¢951,000 before charging partners’ salaries, interest on capital, and cost of traveling for leave.
David Stella Percy
Profit/loss sharing ratio 3 2 1
Salaries GH¢48,000 GH¢72,000 GH¢96,000
Interest on Capital GH¢30,000 GH¢20,000 GH¢10,000
Cost of traveling for leave GH¢20,000 GH¢30,000 GH¢25,000
Required:
Compute the assessable income for each partner.
(7 marks)
Answer
a) David, Stella and Percy
Share of appropriation of profit for partnership year 2018
Partnership Computed Income
(In accordance with section 52(7) of the Income Tax Act (Act 896), benefits paid to
partners are added back)
(7 marks evenly spread using ticks)
- Tags: Assessable Income, Income Tax, Partnerships, Profit Sharing
- Level: Level 2
- Topic: Income Tax Liabilities
- Series: MAY 2020
- Uploader: Cheoli