Question: please do it in 23 minutes will upvote Max, Lilly, and Jiao have been in partnership for many years running a business that offers legal

 please do it in 23 minutes will upvote Max, Lilly, and

please do it in 23 minutes will upvote

Max, Lilly, and Jiao have been in partnership for many years running a business that offers legal services. On opening the partnership each of the partners created overlap relief of 5,000 with the exception of Max, the senior partner, who created 12,000 overlap relief. The original profit-sharing agreement allocates Max a salary of 35,000 per annum and the balance of profits are shared equally between all three partners. Due to the pandemic the business profits have fallen recently and the partnership does not have enough work to continue with three partners. Jiao decided to retire from the partnership and her final day of trading was 31 March 2021. Following Jiao's retirement Max continued to take the same salary and the balance of profits were then shared equally between Max and Lilly who both continued in the partnership offering legal advice to their customers. The recent tax adjusted partnership profits have been as follows: Requirement: a) Calculate the profits allocation for each partner for each of the three accounting periods to 31 December 2021. (7 marks) b) Clearly show the profit assessable on each of the partners for the tax years 2019/20 to 2020/21 inclusive. (3 marks) Total 10 marks

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