Practice Assessment 1 question 4 - FSTP

elliec

Hi everyone

I'm really struggling with the appropriation account part of question 4 of practice assessment 1 for FSTP.

I am getting the right answer for all of it other than the profit for appropriation section of the account. I am getting:
Total profit for appropriation - 80,000
Profit for appropriation Apr - June - 20,000 (1/4 of the year)
Profit for appropriation July - March - 60,000 (3/4 of the year)

But apparently this is incorrect and profit for appropriation April to June is £16,000 and July to March is £64,000. Can anyone tell me how you get to this answer?

Thanks for your help.

Adele69

This has already been answered in: http://forums.aat.org.uk/discussion/443040/pfast-sample-assessment-1-q4-appropriation-accounts as there was a crucial detail missed in writing out the question, as also in the earlier post.


Profit for the Y/E 31-March-20x7 was £80000 before appropriations. 80% of the profit was earned in the period after Chris joined the partnership. luckily this is in the BPP Question Bank FSTP book, page 84 or I wouldn't know because only the answers to sample AAT questions online are in word format. To get to the questions you have to go through the online assessment.

Since July - March would be 3/4 or 75% of the year but they have said "80% of the profit was earned" in this period then this is not 60000 (80000 x .075) but 64000 (80000 x 0.8)