Bill And Mary Wong Are Adult Australian Residents On 1 July 2003 They Formed A Partn 3113035

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BFA714 – Australian Taxation Law
Assignment 2
QUESTION 1
Bill and Mary Wong are adult Australian residents. On 1 July 2003 they formed a partnership called ‘Hobart Sports Depot’ to run a sports supply business. The partnership supplies football clothing and equipment to football clubs in Australia. The business is registered for GST.
The partnership accounts for the business for the year ending 30 June 2019 disclose the following financial details:
The following receipts and expenses are exclusive of GST unless otherwise stated.
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BFA714 – Australian Taxation Law Assignment 2 QUESTION 1 Bill and Mary Wong are adult Australian residents. On 1 July 2003 they formed a partnership called ‘Hobart Sports Depot’ to run a sports supply business. The partnership supplies football clothing and equipment to football clubs in Australia. The business is registered for GST. The partnership accounts for the business for the year ending 30 June 2019 disclose the following financial details: The following receipts and expenses are exclusive of GST unless otherwise stated. RECEIPTS Gross trading receipts 900,000 Capital gain from sale of shares held in an Australian internet company 20,000 see note (ii) below Cash dividend from BHP 10,500 See note (iii) below Interest income from Bank of China11,250 See note (iv) below EXPENSES Salary to Bill40,000 Interest on loan of funds by Mary10,000 Salaries paid to employees 250,000 Rent and power60,000 Purchase of trading stock (see note (v) below)120,000 Superannuation to staff85,500 Superannuation paid on behalf of Bill25,000 Superannuation paid on behalf of Mary25,000 Purchase of treadmills and exercise bikes (see note (vi) below)180,000 Interest on bank overdraft18,623 Provision for long service leave (see note (vii) below)25,984 Provision for bad debts (see note (viii) below)122,000 Notes – additional information in respect of the partnership. The partnership agreement stipulates that Bill and Mary share profits and losses in respect of both income and capital gains and losses on the basis of 50% to Bill and 50% to Mary. The partners purchased the Australian internet company shares in January 2004 and sold them on 31 May 2019. The dividend was fully franked. The Bank of China withheld AUD $1,250 from the gross interest Trading stock at the beginning of the financial year was $170,000. The…

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