Rachel and Bill carry on a partnership together with gross receipts for the current income...
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Accounting
Rachel and Bill carry on a partnership together with gross receipts for the current income year of $ 80,000. During the year the following payments were made:- $ Purchase of trading stock 18,000 Wages to employees 10,000 Advances to Rachel 35,000 Lease payments on two cars 4,000 Rachel and Bill share the profits in the ration of 3:1. Stock on hand at the beginning of the year was $ 3,000 and at the end of the year was $ 3,400. Both cars were used for business purposes, but Bill uses his 40% for private purpose as well. Bill also works part-time as a trainer and generated a gross income of 12,000. He subscribes magazines that update his knowledge on the industry and trainings to be provided to his own clients and it costs him $ 800 in annual subscription fees. He also received fully franked dividends from ABC Company of $1,125 in the current income year. Requirements: a) Calculate the net income of the partnership and the assessable income of the partners. b) Calculate the final tax liability of Bill.
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