Question 4c
Answer
Kang, Ling and Ming
Allocation of profits
Kang | Ling | Ming | ||
---|---|---|---|---|
£ | £ | £ | ||
Year ended 30 June 2011 | ||||
148,800 x 1/3 | 49,600 | 49,600 | 49,600 | ½ |
Year ended 30 June 2012 | ||||
1 July 2011 to 31 October 2011 | ||||
136,800 x 4/12 x 1/3 | 15,200 | 15,200 | 15,200 | |
1 November 2011 to 30 June 2012 | ||||
136,800 x 8/12 x 1/2 | 45,600 | 45,600 | 0 | |
60,800 |
60,800 |
15,200 |
1½ |
Kang | Ling | Ming | ||
---|---|---|---|---|
£ | £ | £ | ||
2011–12 | ||||
Year ended 30 June 2011 | 49,600 |
49,600 |
49,600 | ½ |
Period ended 31 October 2011 | 15,200 |
1 | ||
64,800 | ||||
Relief for overlap profits | (29,400) |
1 | ||
35,400 |
||||
2012–13 | ||||
Year ended 30 June 2012 | 60,800 |
60,800 |
½ |
|
5 |