Final accounts question

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

Best Answer

Answers

  • N4TN4T Posts: 143
    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?
  • 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
  • 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