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Retirement of partnership

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA TX-UK Exams › Retirement of partnership

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by Tax Tutor.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 15, 2020 at 11:56 am #580658
    jean989
    Participant
    • Topics: 29
    • Replies: 9
    • ☆

    Hi Sir,

    can you please explain how to solve this question

    4 Morris, Sally and Bernard have been partners for many years sharing profits and losses
    30:50:20 respectively. On 28 February 2015 Morris retired.
    Tax adjusted profits for the years ended 30 June 2014 and 30 June 2015 were
    £108,000 and £120,000 respectively.
    Morris has unused overlap profits of £10,000.
    What is the trading profit assessable on Morris for 2014/15?
    A £46,400
    B £24,000
    C £24,000
    D £56,400

    thanks

    August 15, 2020 at 2:42 pm #580676
    Tax Tutor
    Member
    • Topics: 2
    • Replies: 3965
    • ☆☆☆☆☆

    You need to work through the lectures on partnerships in Chapter 8 – most notably the section on changes in partners. In addition by the dates on this example you are clearly using out of date material – you must use an Exam Kit / Revision Question Bank for FA 2019!

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