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P and Q are in partnership sharing profit equally.
On 30 june 2015 R joined the partnership and it was agreed that from that date all three partners should share equally in profit. In the year ended 2015 the profit amounted to $300000, accruing evenly over the year, after charging an irrecoverable debt of $30000 which it was agreed should be borne equally by P& Q only .
what should P’s total profit share be for the year ended 31 December 2015?
-Please help me to solve this problem!profit till 30 jun 150,000 P= 75, Q=75
profit till 31 dec 150,000 P=50, Q=50, R=50p’s profit = 75+50=125
debt=30
net profit of p= 125-30hope that helps
The profit for the year, before the debt write-off = 330,000 or 165,000 per 6 months.
1st 6 months, bears all the debt write-off, so profits = 165,000 – 30,000 = 135,000, of which P and Q each get 50%, or $67,500
2nd 6 months, 165,000 shared equally between P, Q and R so 55,000 each.
P’s total share = 67,500 + 55,000 = 122,500
[Check: P 122,500, Q, 122,500 R 55,000. Total = 300,000, total profits]
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