Mary, Nelly and Olive are in partnership on the basis of an agreement which provides for equal sharing of profits after allowing Mary salary at £3,000 per month, but requires interest to be charged on drawings at 6% per annum. Mary drew her salary regularly at the end of each month. Partnership profit for the year ended 30 June 2012 was £312,700. Identify the share of partnership profit of each partner in each of the following independent scenarios:

(a) Mary drew an additional £10,000 on 1 December 2011 while Nelly drew £20,000 on 1 January and Olive £15,000 on 1 April 2012

(b) Nelly and Olive each drew £2,000 per month, Nelly mid-way through the month and Olive on the last day of each month

Transcribed Image Text:

Mary x £128,275 Nelly Olive £92,025 £92,400 y £92,625 £92,625 £92,625 z £127,491 £91,242 £91,617