At 31 March 2020 there was cash on hand (contract income not banked) of $2300, GST inclusive.
accounting
Description
Additional
information for the plumbing partnership business:
1
At
31 March 2020 there was cash on hand (contract income not banked) of $2300, GST
inclusive.
2
Accounts
receivable for plumbing work as at 31 March 2020 amounted to $4,600, GST
inclusive.
3
Accounts
payable at 31 March 2020 were for purchases of plumbing materials, $2,760;
advertising, $230, PAYE of $460 and motor vehicle expenses, $368. These amounts
are GST inclusive, as applicable.
4
During the year plumbing materials of $1,380,
GST inclusive, were taken from the business for Kevin to complete private
plumbing work around his private house.
5
Inventory
at 31 March 2020 was $4,250, cost price GST exclusive.
6
“Entertainment”
relates to entertaining clients at local restaurants and cafes, $1,200 and
renting a corporate box at Westpac Stadium for a “Super 15 Rugby match”, $2,800
for major clients. Food and drinks were served at the corporate box during the
game.
7
Sponsorship
is for purchasing T-Shirts for Kevin’s son’s junior hockey team. The T-Shirts don’t
have the firm’s name imprinted on them. No formal contract is in place for the
sponsorship.
8
Insurance
payments were for:
·
Health
and accident policies for Kevin and Mike, equally – total $3,600. The partners
are to receive any entitlements arising from claims against these policies.
·
Loss
of business profits - $1,750.
·
Plant,
machinery and inventory (business) - $2,400.
9
Interest
paid relates to:
·
Interest
on initial capital contributed by Kevin, $2,000; and Mike, $2,000
·
Interest
on Kevin’s advance (for business purposes) - $600 (No RWT deducted)
·
Interest
on temporary bank overdraft, $460.
10 A proper logbook kept 2 years ago
established 72% business usage.
11 Repairs and maintenance comprise:
·
Leasehold improvements: Major building alterations to the
office to enlarge the area and include a kitchen – building work, $10,000;
electrical work, $1,500. This work was carried out and completed in May 2019.
·
Painting
the internal office area, $1,500, on 30 September 2019.
