(Answered) Problem - the papers of yesteryeardonna and xaviers

Accounting

Problem - The Papers of Yesteryear

Donna and Xavier's business opened on 1 July 2015. The accounting profit and loss is to be shared equally after adjusting for special partnership items. The following transactions were recorded in the partnership's cashbook in the year ended 30 June 2016.

Receipts	$
Cash sales	220,000
Bank loan	55,000
Loan from Xavier	45,000
Interest on drawings - Donna	500
Interest on drawings - Xavier	750

Payments
Rent of shop and sundry expenses (all deductible)	35,000
Salary of part-time assistant	25,000
Salary of Donna	35,000
Salary of Xavier	60,000
Superannuation contributions for assistant	250
Bank loan repayments - principal	2,800
Bank loan repayments - interest	1,500
Interest on capital - Donna	1,000
Interest on capital - Xavier	1,000
Interest on loan from Xavier	2,500
Drawings - Donna	6,000
Drawings - Xavier	12,000
Purchase of trading stock	60,000

The value of the trading stock on hand as at 30 June 2016 was $28,000.

Required: Showing all workings:

1. Calculate the net income of the partnership for the year ended 30 June 2016.

2. Distribute the net income of the partnership for the year ended 30 June 2016.

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