ICAEW AF · Chapter 12 · Question 10 of 11
Rhys and Sian are partners with a 31 December year end. Until 30 June they shared profits equally. From 1 July they agreed to share profits Rhys:Sian 2:1. The profit for the year was £72,000, accruing evenly over the year. There are no salaries or interest. What is Rhys's share of the profit for the year?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) £42,000
Explanation
The profit is split into two six-month periods of £36,000 each. January to June, shared equally: Rhys £18,000. July to December, shared 2:1: Rhys 2/3 x £36,000 = £24,000. Rhys's total = £18,000 + £24,000 = £42,000.
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