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TUTORIAL 2: PARTNERSHIP.

1. Wan, Mat and Saman formed a partnership on Apr 1, 2005 and prepared the first set of accounts to Jan 31, 2006. Thereafter, the accounts were made up to Dec 31 annually.

The terms of the partnership were as follows:

(i) the profit sharing ratios for the relevant periods were as follows :

WanMat Saman

Apr 1, 2005 - Jan 31, 2006541

Feb 1, 2006 Dec 31, 2006433

(ii) Partners salary per month:

	Apr 2005 Jan 2006	Feb 2006Dec 2006
Wan	16 500	18 500
Mat	13 500	15 000
Saman	10 000	10 000

(iii) Interest was payable on the capital contributions made by each partner to the 0partnership at the rate of 10% per annum. The initial capital contributions made by the partners were as follows:

WanRM240 000

Mat RM240 000

Saman RM108 000

The total capital contributions made by the partners were increased to RM1,000,000 on Apr 1, 2006 in the profit sharing ratio as at that date.

iv) The provisional adjusted income of the partnership were as follows :

Apr 2005 Jan 2006RM 1 252 500

Feb 2006 Dec 2006RM 1 523 300

(iv) The capital allowance in respect of the partnership assets were as follows :

YA 2005RM 75 000

YA 2006RM125 000

A) Compute the divisible income of the partnership for each of the accounting periods mentioned above

b) Assuming that the basis period for each of the YA of each partner ended on Dec 31, compute the statutory income for each partner in respect of the partnership.

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