FSTP sample assessment 2

JoshJ1992

Hello,

I am having a look at the above sample assessment on the AAT website and I am stuck on a couple of parts of question 2:

At the end of the financial year on 31 March 20X7, you have the following information:
Total sales were £66,000
Total Purchases were £59,120
At mark up of 20% on cost was used throughout the year

Does anyone know how that get to £55,000 for the value of the cost of goods sold for the year and the £4120 as the value of inventory?

Also, can anyone explain part D of the question where profit for the year is £1,100.

Many thanks.

ChrisJ30

Remember with markup COS is 100%
b) 66000 / 1.20 = 55000
c) Purchases - COS = Closing Inventory
59,120 - 55,000 = 4,120

ChrisJ30

I think Task 2 part d seems to be educated selection type question. So you know the trader had an annual income of £66,000 but expenses of £59,120 (purchases) but on top of that he would of had other expenses like rates, electric etc so £1,100 is more likely.

JoshJ1992

Thank you CPJames, that's very useful. This certainly makes a lot more sense now.

I have another question I seem to be stuck on. Its in FSTP sample assessment 1 and its the first question in task 5. "You are preparing the statement of financial position for the Onyx partnership as at 31 March 20X7. The partners are John and Pat. All the necessary year-end adjustments have been made, except for the transfer of £42,600 profit to the current accounts of the partners. Partners share profits and losses in the ratio 2:3 with Pat taking the larger share".

Can anyone tell me of a way of calculating the balances on the current accounts. The answers that are given are John 17,400 credit and Pat 25280 credit. I've been looking at this question and, although probably obvious, I cannot get to the correct answers.

Thanks again and have a great week everyone!

ChrisJ30

@Josh - see the answer to your last question here - http://forums.aat.org.uk/discussion/comment/445613/#Comment_445613

JoshJ1992

Thanks - that's really useful.

I managed to pass this assessment this morning so am really pleased.