On 1 October 2019, Johann and Wynona, two computer programmers, commenced apartnership. As Johann had contributed most of the working capital, the partnership agreement provided that Johann would receive 60% of the net partnership income. For the year ended 30 June 2020, the partnership returned net profit of $140,000. This was after a payment of $20,000 in interest to Johann on the $120,000 capital which he had contributed to the partnership. Half of the partnership income is derived from overseas sources. Wynona is a non-resident of Australia for tax purposes. What is Wynona’s Australian assessable income? a. Nil b. $70,000 c. $28,000 d. $90,000
Partnership Accounting
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings, admission of a new partner, etc.
Partner Admission and Withdrawal
A partnership is a kind of arrangement between two or more people whereby they agree to manage the business operations and share its profits and losses in an agreed ratio between them. The agreement that is drafted and signed by the partners of the firm is termed as a partnership deed and contains various important clauses agreed between the partners such as profit/loss sharing, interest on capital, remuneration allocation of each partner, drawings of a partner, etc.
- On 1 October 2019, Johann and Wynona, two computer programmers, commenced apartnership. As Johann had contributed most of the
working capital , thepartnership agreement provided that Johann would receive 60% of the net partnership income. For the year ended 30 June 2020, the partnership returned net profit of $140,000. This was after a payment of $20,000 in interest to Johann on the $120,000 capital which he had contributed to the partnership. Half of the partnership income is derived from overseas sources. Wynona is a non-resident of Australia for tax purposes.
What is Wynona’s Australian assessable income?
|
a. |
Nil |
|
|
b. |
$70,000 |
|
|
c. |
$28,000 |
|
|
d. |
$90,000 |
Step by step
Solved in 2 steps with 1 images
