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
Trading income assessments
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
Tutorial note: The cessation rules apply to Ming for 2011–12 since she ceased to be a partner on 31 October 2011.