Partnership Appropriation

If there is the partnership appropriation question, do I add both the interest in drawings and drawings, or do I just add interest in drawings?

Answers

  • sjtoomer
    sjtoomer Registered Posts: 32
    edited May 4
    I believe you just add the Interest On Drawings to the Profit For The Year, before then subtracting the Salaries and Interest On Capital, to give the Residual Profit, which is then shared between the partners in their profit-sharing ratio. I am revising for my Final Accounts Preparation exam in 2 weeks' time.
    leoF
  • sjtoomer
    sjtoomer Registered Posts: 32
    I passed my FAPR Examination on 18/05/2022. I got questions which required you to work-out Mark-Ups and Margins in the inverse way (i.e. you get a Cost Price and a Sell Price and you need to calculate what mark-up and margin these would be, which is more difficult), Good-Will in the inverse way (i.e. you get the current accounts and you need to calculate the good-will amount, which is the more straight-forward way), some very strange questions on organisational financial reporting, the SFP question was harder than it looked (due to some unusual additional current assets/liabilities), as was the Net Current Assets question (due to using lots of differences). So, although FAPR is a little easier than AVBK, you still really have to know your stuff. Luckily, I am good at fractions and I remembered the COGS and Accounting Equation formulas, along with the SFP/SPL lay-outs, and you also need to be good at classifying the different types of accounts for preparing the SFPs/SPLs (i.e. current/non-current asset/liability type accounts). I got an un-neccessarily confusing/difficult AVBK Examination back on 05/04/2022, but nevertheless still managed to pass it. Other students have complained about how difficult the AQ2016 L3 examinations are this year and the tutors have noticed this too. Good Luck to everyone! I just have IDRX (In-Direct Tax) to go, but this is meant to be easier than AVBK/FAPR.
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