Home For AAT student members AQ 2013 AAT Level 3 (Level 6 in Scotland)
Current updates regarding coronavirus (Covid-19) and the precautions AAT are taking will be continually updated on the below page.

Please check this link for the latest updates:
We hope you are all safe and well and if you need us we will be here. 💚


FSTP AAT Sample question Paper 1 Task 5 !!! I'm confused!

Alichat15Alichat15 Registered Posts: 2
Please can somebody advise me on this one?? Scratching head in confusion!!! Preparing the statement of financial position.
2 partners Jon & Pat, final trial balance figure below (assuming 42,600) All 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.
My workings are £42,600/5 x 3 = £25,560 for Pat & £42,600/5 x 2 = £17,040 Jon totalling £42,600.... but the answer advises Pat = £25,280 & Jon receivers £17,400 a difference of £80 ???
Can anybody help on where the extra £80 comes from???

Comments

  • Adele69Adele69 CambridgeAAT Student Posts: 320
    You're reading part of the Trial Balance incorrectly.

    Your % share of their profits are correct:
    Partners total profit 42600
    Pat's 3:5 share 25560
    Jon's 2:5 share 17040

    But on the Trial balance it shows
    Pat Current Account 280 Dr (which is money he owes)
    Jon Current Account 360 Cr (which is money he owns)

    The revised Current Accounts in SPL would be
    Pat 25560 - 280 = 25280
    Jon 17040 + 360 = 17400
    Alichat15
  • Alichat15Alichat15 Registered Posts: 2
    Thank you Adele69 ;)
Sign In or Register to comment.