Muungano Traders is made up of three partners: Balama, Sadala and Katana with profit sharing ratios of 45%, 15% and 40 % respectively. The partners are residents for the year 2021. The following details were obtained from their financial statements as at 31st December 2021: TZS '000' Gross profit Interest on Katana's withdraws Profit on sale of machine Operating expenses Salaries and wages Legal fees, consultancy and sundry expenses Office rent Medical expenses Accounting fees Charity and donations Entertainment Salaries to partners (paid equally) Interest on Capital Katana Sadala Balama Interest on Loan Balama Sadala Katana Depreciation Net Profit. TZS '000' 173,900,000 7,750,000 2.210,000 183,860,000 7,300,000 7,900,000 725,000 7,250,000 7,650,000 7,625,000 7,500,000 50,890.000 96,840,000 745,000 755,000 1,500,000 725,000 715,000 NIL 1,440,000 22,150,000 61,930,000 Additional information: 1. The office rent was paid to Katana in March 2021. 2. Half of the medical expenses were respect of treatment of partners and their families equally. 3. Donation was paid to Vingunguti Orphans Centre a charitable Institution. 4. Entertainment includes TZS 230,000,000 in respect of entertainment to Katana. 5. Legal fees in respect of a traffic offence to Balama TZS 760,000,000. 6. TZS 725,000,000 had been paid to Tax Consultant in respect of tax computation. 7. In February 2021, there were three items of expenses incurred and not treated in the financial statements: Motor Expenses TZS 850,000,000; Bank interest on loan TZS.125,000,000 and sundry expenses TZS 190,000,000. However, in September 2020 there was a capitalized interest of TZS 6,000,000,000. 8. In April 2021, there was a capital sum paid to MD Motors Ltd for acquiring patent right that has been put into use from 1st January 2021 to manufacture car chases TZS 230,000. The useful life on the right is 5 years and 8 months. 9. On 31st December 2020, the partnership's pools of depreciable assets' written down values were as follows: Class 1: TZS 60,000,000, Class 2: TZS 10,000,000, Class 6: TZS 70,000,000; whereas previous periods' accumulated depreciation allowances are as follows: Class 1: TZS 7,700,000,000, Class 2: TZS 13,640,000 and Class 6: TZS 80,000,000. 10. The partnership sold one of its machines which had a book value of TZS 12,790,000 at TZS 15,000,000. equired: compute adjusted Partnerships' business chargeable income and partners' shares of come for the year of income 2021
