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Calculating Net Income of TelDrop Partnership Firm : Report

   

Added on  2020-01-07

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Taxation
Calculating Net Income of TelDrop Partnership Firm : Report_1

Table of ContentsINTRODUCTION...........................................................................................................................3PART A...........................................................................................................................................3PART B...........................................................................................................................................4PART C...........................................................................................................................................71. Calculating net income of TelDrop partnership firm for the year ended 30 June 2017..........72. Distributing the net income of the partnership for the year ended 30 June 2017....................9PART D...........................................................................................................................................91. List any amounts for which there is no present entitlement as at 30 June 2017......................92 Amount retained by trust........................................................................................................10(3) Taxable income....................................................................................................................11CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................12
Calculating Net Income of TelDrop Partnership Firm : Report_2

INTRODUCTIONCorporate tax may be defined as obligations which are levied by the government onconcerned authority. Tax is charged or calculated on income according to the rates introduced byAustralian Taxation Office. In every country, tax is major income source for government whichin turn enables them to take initiatives for economic growth and development. Hence, todetermine the tax liability it is highly required for business entity to find assessable income(Woellner and et.al., 2017). Further, bases of tax also highly differ from one individual toanother significantly. Moreover, tax liability is highly based on the income generated during thefinancial year or period. The present report is based on the case scenario of George Smiley whoworks as senior sales manager in a store which offers both telephone and ancillary equipments tothe customers. George Smiley also has his own businesses as well as such as second chance andTelDrop. In this, report will present the manner in which net income can be assessed. Besidesthis, it will also shed light on the ways through which tax liability for trustees can be identified. PART A On the basis of cited case situation, salary received by George during the accounting year2016-17 accounts for $85000. Given case situation also presents that several deductions areavailable to George which in offers several monetary benefits to him. Calculation of taxable income Particulars Figure (in $)Salary85000Less: Taxwithheld 1550069500Cost of seminar attended 1000Decline invalue 700Repairs 560
Calculating Net Income of TelDrop Partnership Firm : Report_3

to equipmentFees charged by an accountant 540Donation to charity 300Private health insurance 4000Net capital gain 18000Franked dividend 7000Franking credit 1000Total expenses33100Taxable income orsalary 36400PART BThe cited case situation presents that George has opened another business such as SecondChance. Case also presents that George undertakes accrual basis of accounting for recording anddisclosing the transactions. Net income presents the amount determined through deducting tax from assessableamount. The below mentioned table presents that amount of net loss for the period ended at2016-17 accounts for $34857 respectively. Hence, no liability is imposed by government in frontof business entity when loss occurred. By considering the adjustments value of sales, closingstock, purchase etc. has been determined in the following manner: Working note: 1
Calculating Net Income of TelDrop Partnership Firm : Report_4

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