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Sam and Rachel operate a legal practice in partnership. The Partnerships receipts and paym

Sam and Rachel operate a legal practice in partnership. The Partnerships receipts and paym

Sam and Rachel operate a legal practice in partnership. The Partnerships receipts and payments (not including GST) for the year ended 30 June 2019 are as follows: Receipts
$ 650,000 35,000 5,000 4,000
Payments $
Notes
Professional fees Sales of Do-It-Yourself Wills Interest on Bank Deposits Door prize (note 1)
35,000 Office rent 15,000 Cost of Do-It-Yourself Wills (note 2) 50,000 Salary paid to employee secretary 250,000 Salary paid to partners (note 4) 290 Purchase of new calculator 1,400 Cost of meals and entertainment for clients 4,000 Tax agent's fees for preparing tax returns for last year 40,000 Cost of office fit out for the lease premises 5,000 Repairs to wall in the office (note 5)
(1) Every year the partners attend the annual ball. As part of the entry fee they are entitled to a raffle ticket. This year the partners won $4,000 from the raffle.
(2) The Opening stock value of the Will guides for tax purposes was $19,000 and the Closing stock value for the Will guides was $9,000. (3) The partners received a salary of $125,000 each (including PAYG withholding of $25,000). (4) An employee fall in the office and left a substantial hole in the wall which was repaired (5) The partnership had a tax loss of $10,000 in the 2018 year.

 
Tripti 06-Dec-2019

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