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I was doing the examples and I felt i needed more practise so I asked ChatGPT to make other problems and when i gave it the answers to check it said it was incorrect and solved it with this formula : Drawings = (Ending Net Assets + Additional Capital Introduced – Starting Net Assets) – Profit. Now i know the formula provided in the lecture notes is diffrent but how do i solve the problems? Example of the problems:
Exercise 4:
Starting Net Assets = $70,000
Ending Net Assets = $80,000
Additional Capital Introduced = $5,000
Drawings = $7,000Calculate the Profit for the year.
or
Exercise 5:
Starting Net Assets = $90,000
Ending Net Assets = $110,000
Additional Capital Introduced = $20,000
Profit = $12,000Calculate the Drawings during the year.
my answer for the exercise 4 was 12 000 but chat GPT kept insisting on 8000. Answer of exercise 5 was 12 000 but chat said it was $28,000.
What do I do ? I am soo confused
Exercise 4: Rearranging that formula to solve for profits looks correct.
Drawings = (Ending Net Assets + Additional Capital Introduced – Starting Net Assets) – Profit
Rearrange that to get:Profit = (Ending Net Assets + Additional Capital Introduced – Starting Net Assets) – Drawings
Passing the values into the formula:
Profit = $80,000 + $5,000 – $70,000 – $7,000 = $85,000 – $77,000 = $8,000Exercise 5, using the formula as it’s given:
Drawings = (Ending Net Assets + Additional Capital Introduced – Starting Net Assets) – Profit
= $110,000 + $20,000 – $90,000 – $12,000 = $130,000 – $102,000 = $28,000IntrepidLearner: Thank you for answering the question. However in future please do not answer in this forum because it is the Ask the Tutor Forum and you are not the tutor. But please do help people in the other Paper FA forum, which is for students to help each other.
Your answers to both the questions are in fact not correct!
Asja: Your answers to both of the questions are correct 🙂
For example 4:
Increase in net assets = 10,000 = capital introduced + profit – drawings
10,000 = 5,000 + Profit – 7,000Profit = 10.000 – 5,000 + 7,000 = 12,000
For example 5:
Increase in net assets = 20,000 = capital introduced + profit – drawings
20,000 = 20,000 + 12,000 – drawingsDrawings = 12,000
Obviously we cannot guarantee that the AI will always be correct (and it also depends on how the question was entered). However I will check and try and teach it to do better 🙂
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