Partner leaving

Partner leaving

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3 partners sharing equally

Year end 29/2/04
Profit (adjusted) £39063
Partner (a) leaves 30/6/03

Is the profit allocated as follows

a- 1/3/03 -30/6/03 122 days over 366 days =£13021 / 3 = £4340 less overlap relief

b- (39063-4340)/2 =£17361
c- (39063-4340)/2 = £17361

Jim

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By AnonymousUser
24th Jan 2005 14:31

Looks alright to me
...assuming of course that the partners agree that the profit is to be treated as earned evenly throughout the accounting period.
The "less overlap profit" is of course, a basis-period related question. I'm splitting hairs, of course, but I find it helps to think of that as quite separate from the "allocation of profit" issue.

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