Appropiation Account
kazsamx
Registered Posts: 8 Regular contributor ⭐ ? ⭐
I'm having a look at the past paper for June 06, in the second part, can some one advise me how to calculate the net profit in the appropriation account for year ending April 2006........for some reason I don't seem to be able to work this one out.......Thanks in anticipation
0
Comments

Assuming you have the correct figure of 122200 as your NET profit the little sneaky thing they often do is to give you a problem of sharing the profit over two different time periods so to start with you have to take 122200 x 9/12 to get the NET POFIT figure for May Jan which is 91650. Then 122200 x 3/12 for Feb  April.
Continuing on with each part of the year you can now take the salaries and apply the same formula so Ade's salary is 10900 x 9/12 to give 8175.
The same applies to the interest on capital. 30000 x 6% (which will give the yearly total of Int. On Cap of 1800  now apply formula...so 1800 x 9/12 to give 1350 for May  Jan
Now, if you have done your Goodwill calculations correctly, there should be a different second half year Capital balance for both partners and a new capital balance fo the new partner.
The main thing to remember is that the profit, before anything is subtracted or shared out should be, in this case divided over the two periods of 9 months and 3 months amd the same formula must be performed on salaries and Int on Cap.
It is all explained in the answer sheet but maybe there is still something you can't see  hope I've helped.0 
Thanks
Wicked Thanks for that your a star:thumbup1:, will give this a good going over and see if it works for me.0
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 18.9K For AAT students
 248 NEW! Qualifications 2022
 138 General Qualifications 2022 discussion
 8 AAT Level 2 Certificate in Accounting
 33 AAT Level 3 Diploma in Accounting
 59 AAT Level 4 Diploma in Professional Accounting
 8.9K For accounting professionals
 23 coronavirus (Covid19)
 274 VAT
 92 Software
 274 Tax
 136 Bookkeeping
 7.3K General accounting discussion
 193 AAT member discussion (AATQB, MAAT, FMAAT and AAT Licensed Accountants and Bookkeepers)
 3.8K For everyone
 39 AAT news and announcements
 352 Feedback for AAT
 2.8K Chat and offtopic discussion
 589 Job postings
 17 Who can benefit from AAT?
 36 Where can AAT take me?
 44 Getting started with AAT
 26 Finding an AAT training provider
 48 Distance learning and other ways to study AAT
 25 Apprenticeships
 65 AAT membership