Jenny and Alex are in a partnership as retailers of electrical goods. The partnership records, exclusive of GST, for this income year disclose:
|
| Gross receipts from trading |
|
| Purchases of trading stocks |
| Partners' salaries (each) |
| Interest on cash advance made to the partnership by John |
| Salaries for employees and rent paid |
| 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
