Appropriation

Appropriation

I used 20000 not 30000 as Dan was only there for two thirds of the year. I did give Dan 750 interest on capital though. When I added all the figures up at the end to see if they amount to the 19000 profit I was 4 pounds out. Nevermind, all my workind seem to be right so I should get good marks for this. <BR><BR>Does anyone know what the pass mark is?

Appropriation

i am sure dan was only meant to get a salary of 20'000 not 30'000. did anyone else end up with the odd pennies in the profit share. my profit share's were not round figures. i think i stuffed that up.

Appropriation

Hi, I've done the same as you upto the £19,000 but then I've split this £19000 as the profit between them. Don't know if this is right or if I've just made it up as I went along! So glad its over now though!<BR><BR>Total Profit

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£101,250<BR>Old Profit

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£67500<BR>New Profit

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£33750<BR><BR>Salaries<BR>Dan

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£20000<BR>Kim

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£20000

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£10000<BR>ted

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£20000

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£10000<BR>Total

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£60000

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£20000

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£80000<BR><BR>Interest on Capital<BR>Dan

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£750<BR>Kim

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£750<BR>Ted

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£750<BR>Total

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£2250

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£2250<BR><BR>Profit Apprtionment<BR><BR>Profit to be shared = £19000<BR><BR>Upto 30th November = 19000/12 x 8 = 12666.67<BR><BR>Dan 5066.67<BR>Kim 3800<BR>Ted 3800<BR><BR>From 30th November = 19000/12 x 4 = 6333.33<BR><BR>Kim 3166.67<BR>Ted 3166.67<BR><BR><BR><BR>

Appropriation

I started a topic called "Appropriation Account" earlier this evening - you might want to read it, there are loads of different figures on there!!! Seems like this one caused mass confusion all round!<BR><BR>Lynn

Appropriation

<br><br><< <i>Tango - I too got £9000 of profit left to share out. Initailly I had £19000 as I used salary of £20000 for Dan instead of the £30000. However by using this I wasn't able to get round numbers (which is what I expected as the exam didn't instruct to round off to the nearest decimal)<BR><BR>So initially, my profit share was as follows (based on total salary of £80k):<BR><BR>Dan 19000 x 40% x 8/12 = 5066.6666<BR>Kim 19000 x 30% x 8/12 = 3800<BR>Ted 19000 x 30% x 8/12 = 3800<BR>Obviously I then needed to calculate the remainder 4 months at 50% each... still leaving me with non-rounded number.<BR><BR>However, when I used total salary of £90k and after deducting the interest (I can't remember what the amount was), and I got the £9000 to share out my calculations were as follows:<BR><BR>OLD RATIO<BR>Dan 9000 x 40% x 8/12 = 2400<BR>Kim 9000 x 30% x 8/12 = 1800<BR>Ted 9000 x 30% x 8/12 = 1800<BR><BR>NEW RATIO<BR>Kim 9000 x 50% x 4/12 = 1500<BR>Ted 9000 x 50% x 4/12 = 1500<BR><BR>Total profit shared out:<BR>Dan = 2400<BR>Kim = 3300<BR>Ted = 3300<BR>Total = 9000<BR><BR>What's confused me is that I naturally put through the £20k for Dan's salary instead of the £30k, but it wasn't until I did the calculations on both that I decided to use his £30k salary because the figures "looked better". Probably the wrong approach!! <BR><BR>We'll see what the results say....<BR><BR>Anyone else have similar figures or ideas to me?</i> >><br><br><BR><BR>I am glad to hear someone else got the same as me, although, I did dream last night that I put Dan's profit share down as 10,400 not 2,400. I dunno if I did or not. Now I am dreaming about the exam, what a freak!

Appropriation

Sorry. My previous message came on the board not very well laid out. Even I don't understand it. Hope this is better.<BR>This is how I did it:<BR><BR>PERIOD 1 (8 months)<BR><BR>Profit available (8/12x101250)......................................................67500 <BR>Less salaries: Dan....................................................20000<BR>.......................Kim.....................................................20000<BR>......................Ted......................................................20000.........(60000)<BR>.................................................................................._____<BR>Less interest on capital: Dan (8/12x3%x25000)...........500<BR>.......................................Kim (8/12x3%x25000)...........500<BR>.......................................Ted (8/12x3%x25000)...........500..........(1500)<BR>.................................................................................._____........_______ <BR>Profit available to share...................................................................6000<BR>Profit share: Dan (40%x6000).....................................2400<BR>.....................Kim (30%x6000)....................................1800<BR>.....................Ted (30%x6000)....................................1800............6000<BR>.................................................................................._____........_______ <BR><BR>PERIOD 2 (4months)<BR>

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<BR>Profit...............................................................................................33750<BR>Less salaries: Kim (4/12x30000)................................10000<BR>.......................Ted (4/12x30000)................................10000.........(20000)<BR>..................................................................................._____<BR>less interest on capital: Kim (4/12x3%x25000).............250<BR>......................................Ted (4/12x3%x25000..............250..............(500)<BR>..................................................................................._____.........______<BR>Profit available to share..................................................................13250<BR>Profit share: Kim (50%x13250)...................................6625<BR>....................Ted (50%x13250)...................................6625............13250<BR>..................................................................................._____.........______<BR><BR>

Appropriation

thats exactly what i did!! i dont think dan was suppossed to have £750 for interest on capital as he didn't have any capital in the business for the last 4 months!

Appropriation

why did you let give ted and kims salaries as 20000?? shouldnt it of been 300000?