Final accounts question

jordanfisher

I'm just after some help, doing some practise assessments the question is about appropriation account a profit and partner leaving.

I have the following information;
Profit before appropriation is £84000, and £48000 after deductions this is correct as per the answers.

There are 3 partners, financial year starts April.
From April - 30th June profits are A 30% B 50% and C 20%

From July - 31st March profits are B 70% and C 30% as A has left.

Working from £48000 as the profit to be distrubted can you advise what you think the answer should be please. As what I have isn't right according to my answer sheet.

Thanks

N4T

As no information is given I have to assume that profit is earned at an even rate.

................................3 mths to 30 Jun.........9 mths to 31 Mar
Profit available
for distribution........12,000...............................36,000

A 30%.......................3600..................................NIL
B 50%/ 70%.............6000..................................25,200
C 20%/30%...............2400.................................10,800

Is this the answer?

jordanfisher

This is the answer I got too.

But the answer booklet is
A; 2700 & 0
B; 4500 & 27300
C; 1800 & 11700

Meaning 1st April - 30th June total 9000
1st July - 31st March total 39000

N4T

Which book is it from? They either missed information out from the question or their answer is wrong.

jordanfisher

Osborne 2013 practise assessment 2. From the tutor zone book.

I'm happy knowing that I got the same answer as you so that's fine :-) thanks for your help