question about profit sharing

hey,
well let’s see .

Profit was accrued evenly, that means same amount was is deemed to be received every month.
A change in profit share ratio took place in mid year, that means up to this date, half of 480.000 was earned, that is : 480.000 / 2 = 240.000.

Salary of partners is paid first (as far as i remember, check in your book to be sure) that means before you share profit, 10.000 goes to B ,because now u deal with first half of the year, so for half year u take half salary. Leave C’s salary apart for now, as he didn’t join the partnership yet.
Then u need to share rest of profit : 240.000 – 10.000 = 230.000
Ratio is 3:2 , so 3+2 = 5.
230.000 / 5 = 46.000
46.000 x 3 = 138.000 – A’s share.
46.000 x 2 = 92.000 – B’s share ( + 10.000 salary, so in total he got 102.000)

Then see second half of the year when new partner entered.
Profit share changed, and again u deal only with half year profit , another 240.000
But firstly u need to pay rest of salaries out of it , 10.000 to B ; 6.000 to C. (another 6.000 of his salary will be ignored).
Now 240.000 – 16.000 = 224.000 is split using new ratio .
224.000 x 50% = 112.000 – goes to A
224.000 x 25% = 56.000 – goes to B
224.000 x 25% = 56.000 goest to C.

Now conclude:
A = 138.000 + 112.000 = 250.000
B = 10.000 + 92.000 + 10.000 + 56.000 = 168.000
C = 56.000 + 6.000 = 62.000

Total : 480.000

hope it helps 🙂

ah 😀
then i misread it 🙂 sorry 🙂

I have edited the post for correct figures.

how did you get the answer? I can’t get it. please help me to answer it.

Partnership accounting is not in the syllabus any longer – it was removed many years ago and cannot be asked in the exam (as you can see, these posts date from ten years ago when it used to be in the syllabus!).