Think a senior colleague has made a mistake

JoeH247

I am an apprentice doing AAT Level 3. A week ago at work I did the income and expenditure summaries for a 4 month period for a client who ceased trading as a sole trader on 31st July last year, and started a limited company.

As well as that, he has some fixed assets, which are depreciated at 25% on a reducing balance basis. As I was accounting for 1/3 of a typical year, I applied depreciation at 8.33%, 1/3 of 25%. However, when my work was reviewed by a senior colleague, she changed it to 6.25%, a quarter of 25%. Unless there's something I'm not privy to, or I've gone mad, I don't see how she is correct and I am wrong.

I know from the perspective of the clients tax bill it makes no odds as depreciation is not allowable, but it is really bugging me that my colleague thinks that I got it wrong, when I'm fairly sure I'm correct.
I do get on very well with this colleague, although I do think that she thinks that I'm not very good. I've done very well in my exams so far, but I don't think I always show this at work.

douglasstroud

Have you not asked your colleague why she changed the rate? that is the first thing I would have done, part of learning is making mistakes but unless you know why you made them how will you ever learn from them, alternatively maybe you are right and she is wrong in which case it still needs to be addressed.
Just a few other things to consider, what has happened to the fixed assets?
Were they disposed of at a date prior to cessation?
Were they transferred into the new Ltd Co prior to cessation?
Was there a final year depreciation policy in place?

It may not always be as clear as you think, so you need to ask!

livintiv

I echo Douglas here - I'd double check my figures, then if I still needed to, find her at a 'quiet' moment (like that exists ), and say, 'Hi - I'm probably being dense and missing something obvious, but I can't see how you got this figure. Do you have some time for me later today when you could talk me through this?'

I mean, I'm not an apprentice and I do this all the time! You say that you get on with her, so she likely won't object. As an apprentice, moreover, you're meant to be learning and asking questions and getting stuck - it's how we learn.

(So what if you think she thinks you're not very good?)

JoeH247

To be honest, I don't know if there was a policy in place. I'm just asked if I can do the summaries and that's that. And although I did say that we get on, which we do, we rarely discuss my work. She never really comes back to me and says "oh, that wasn't quite right. next time, do this instead of that."

I am quite a shy person and I don't really feel comfortable asking her. Especially with other people around.