Daniel and Ashley have been in partnership for many years, preparing accounts to 31 December each year.

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Question:

Daniel and Ashley have been in partnership for many years, preparing accounts to 31 December each year. For the year ended 31 December 2019, taxable trading profits were 50,000. Daniel is allocated an annual salary of 10,000 and Ashley's salary is 15,000. The profit sharing ratio was 1:1 until 31 August 2019 when it changed to 1: 2 with no provision for salaries.

Allocate the profits for the period of account ended 31 December 2019.