logo

Calculation of Net Income of Partnership Firm

   

Added on  2020-10-22

8 Pages2067 Words177 Views
 | 
 | 
 | 
TAXATION LAW
Calculation of Net Income of Partnership Firm_1

Table of ContentsINTRODUCTION...........................................................................................................................1QUESTION 1 Calculation of net income of partnership firm.........................................................1QUESTION 2 Fringe Benefits Tax Consequences of John's Remuneration Package....................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
Calculation of Net Income of Partnership Firm_2

INTRODUCTIONTaxation Law means the assessment by the government authorities relating to income andexpenditure of the businesses and computing the income for the tax purposes. It covers thepolicies, rules and laws that involve the charge on estates, transaction, income, property, licensesand more by government. The given project is divided into two questions. First question involvethe determination of net income for the year ended 30th June, 2017 of Daniel and Olivia Smithoperating business called Brekkie and Lunch and OZ Bottle Shop at 50 York Street Sydney as apartnership. Second question contains theFringe Benefits Tax consequences for John who issenior executive at printing company and receiving various other benefits like child's school fees,accommodation service along with his remuneration package. QUESTION 1 Calculation of net income of partnership firmFor calculation of net income for Daniel and Olivia Smith who are operated a mixedbusiness as Brekkie and Lunch and OZ Bottle Shop, trading and profit and loss account will becalculated and the net income will be ascertain for the year ended 31th June, 2017. The tradingand P & L A/c will be prepared as under as per the various provisions of income tax laws ofAustralia: Trading and P & L A/c for the Year ended 30th June, 2017ParticularsAmount ($)ParticularsAmount ($)To Opening Stock9120By Sales A/c ( Working Note 1)182055To Purchase ( Working Note 2)160343To Gross Profit (c/f)22342By Closing Stock9750Total191805Total191805To Car Expense A/c ( Working Note 3)By Gross Profit (b/f)22342VAN 1260 * 90% = 1134 SUV 2050 * 60% = 12302364To Electricity Bill A/c ( 1470 * 80%) (W / N 4)1176To Council Rates A/c ( 517 * 60%) (W / N 4)310To Business Insurance A/c1250To Mobile Bill A/c (704 * 90%) (W / N 4)6341
Calculation of Net Income of Partnership Firm_3

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Taxation Theory, Practice and Law
|9
|2184
|127

Assignment on Taxation Assignment on Taxation Law (Pdf)
|8
|1986
|104

Taxation
|8
|1622
|418

Fringe Benefit Tax and Income Tax Assessment Act
|9
|1677
|201

Short-term Receivables
|8
|1766
|213

Calculation of Net Income and Fringe Benefits
|8
|1722
|503