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Newtown School's

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › Newtown School's

  • This topic has 1 reply, 2 voices, and was last updated 9 years ago by AvatarJohn Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
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  • May 20, 2016 at 8:58 pm #316119
    AvatarJana
    Member
    • Topics: 30
    • Replies: 18
    • ☆

    Dear Sir John,

    I have a question to the Newtown School question, particularly to the Salaries.
    I don’t understand why they divided by 2?

    My calculation to Salries:
    Previous y/e : 620,000
    One Leaver: (26,000)
    Total Salaries: 594,000 /9 months school year= 66,000.
    66,000 * 5 months =330,000 .

    2% Pay rise since 1st December,Salary increase +2% =(330,000*0.02)+330,000= 6,600+330,000 = $336,600.
    Add: 4 months normal salary: 66,000*4=$264,000.
    ————-
    $600,600.

    Sir, I found in the result they have $599,940.? What do you think can I solve it my way?Is it correct?

    Thank you very much.
    Jana.

    May 21, 2016 at 9:20 am #316156
    AvatarJohn Moffat
    Keymaster
    • Topics: 57
    • Replies: 54836
    • ☆☆☆☆☆

    They are preparing a budget for 12 months – not for 9 months.

    The year end is 31 May, and the salary increase is from 1 December. 1 December to 31 May is 6 months 🙂

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