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Dear Tutor
Show the appropriation of the pro?ts to the two partners with allitle explanation.
Q: A partnership makes pro?ts of $118,000. The partnership agreement stipulates that:
– Partner A receives a salary of £30,000 and interest on capital account of 10% pa
– Partner B receives a salary of $20,000 and interest on capital account of 10% pa
– Capital accounts: Partner A = $200,000; Partner B = £120,000
Pro?t sharing ratio A:B = 3:2Best Regards,
@adriennekelly said:
The answer is incorrect in the course notes, you are correct it should be paid to the government.
I have sent an email to the open tuition team about these incorrect answers and you should note that the following are incorrect answers also:-
Chapter 4 – Question 3, they did not ask us what was the opening balance, they asked what was the balance at 31/3/13, they also put dates in that were not referred to in the question.
Chapter 4 – Question 6 – answer A = 45 which is the incorrect answer, the answer is B
Chapter 6 – Questions 1 & 2 – see my question on this in the forum, I’m waiting on an answer but the answer given in the notes is incorrect or else they put the incorrect dates !
Chapter 10 – Question 6 – wrong bal written as b/forward – so you’re not incorrect when you get your answer ignore the bal b/fwd
Chapter 10 – Example 2 – markup in question is 30% – they used 50% in the answer – change your mark up in the example to get the answer they use
Chapter 10 – Question 7 – the question uses mark up of 40% but the answer uses 50%, change your mark up to 50% to get their answer. And at the very bottom they use closing stock = 7,500 + 37,000 – 30,000 (this is wrong it should be 14,500 = 30,000 cost of sales (not 14,500 which is closing stock)
Chapter 10 – Question 8 – the amount paid to suppliers is in the answer as 85,393, use this as your figure and you will get one of the answers they gave, otherwise their answer for drawings is out by 3…..Adrienne
