Help with Assignment Unit 18

jewels.p

The accounting year end date is 30/9/10

Julian joins the Partnership on 1/1/10.

I have calculated the profits before Julian joined and after he joined. How do I calculate Julian's share of the adjusted trading profits for the accounting period ending 30/9/10?

Is it the profit I have calculated x 20% (Julians Share) x 9/12 (Jan-Sept) PLUS
Profit x 20% x 3/12 (Overlap Profit) or am I completely wrong on this?

My Book is not helping me at all and it is driving me mad!

noodles

jewels.p wrote: »

The accounting year end date is 30/9/10

Julian joins the Partnership on 1/1/10.

I have calculated the profits before Julian joined and after he joined. How do I calculate Julian's share of the adjusted trading profits for the accounting period ending 30/9/10?

Is it the profit I have calculated x 20% (Julians Share) x 9/12 (Jan-Sept) PLUS
Profit x 20% x 3/12 (Overlap Profit) or am I completely wrong on this?

My Book is not helping me at all and it is driving me mad!

calaculate profits for george and gemma 01/10/09 - 31/12/09
calculate profits for 01/01/10 - 30/09/10 and split three ways depending on their split of profits.
when you have julians share of profits/9*3 and that should be the assessable trading income if my notes are correct!! you divide by 9 as Jan to Sept 10 calculated and you divide by 2 as want jan to march

jojoscottison

calaculate profits for george and gemma 01/10/09 - 31/12/09
calculate profits for 01/01/10 - 30/09/10
Julian's share of the adjusted trading profits for the accounting period ending 30/9/10 will be 20% of the profit for 10/10/10--30/09/10
the assessable trading income for Julian for 2009/10 will be the overlap profit( profit from 01/01/10---05/04/10)

jewels.p

Thanks for the replies. This was doing my head in!