Question
Paul and Xavier are in partnership, sharing profits in the ratio 3:2 and compiling their accounts to 30 June each year. On 1 January 2020
Paul and Xavier are in partnership, sharing profits in the ratio 3:2 and compiling their accounts to 30 June each year.
On 1 January 2020 Roshi joined the partnership, and from that date the profit-sharing ratio became Paul 50%, Xavier 25% and Roshi 25%, after providing for salaries for Xavier and Roshi as follows:
Xavier $20,000 per year
Roshi $12,000 per year
The partnership profit for the year ended 30 June 2020 was $480,000, accruing evenly over the year.
What are the partners' total profit shares for the year ended 30 June 2020?
P Q R
$ $ $
A 256,000 162,000 62,000
B 248,000 168,000 64,000
C 264,000 166,000 66,000
D 264,000 156,000 60,000
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