Thanks as per usual for helping me. I agree with you - I don't like computerised exams with computerised answers, and also never receiving the results of our final exams - we simply get marked as pass or fail which means nothing to me - but enough of my complaining. The good thing is you did help me with my ratio's and I could answer that question per the comptuer correctly.
This was the actual question:
The following information has been provided for Smith and Jones Partnership
The following information has been provided for Smith and Jones Patnership: o net profit before adjustments: $214,000 o total salaries to be credited to partners: $48,000 o interest on loans and capital calculated at 8% pa o interest on drawings calculated at 10% pa o profits are shared based on capital balances o account balances: o Capital - Smith: $100,000 o Capital - Jones: $200,000 o Drawings - Smith $8,000 o Drawings - Jones: $15,000 o Loan from Smith: $20,000 o Loan to Jones: $40,000
Based on the above - My net Profit and Loss differed to the computer so it was marked incorrectly
Perhaps the statement to me there can be numerous interpretations - Salary to be shared based on % of Capital Balances, perhaps it is a simple 50:50 split, or perhaps that is the total figure for each partner!
The reason why I am interested in view points, is that if I am misunderstanding things that others interpret with ease then I need to work on that moving forward.
Thanks again -- remember you have a tour quide in Australia - today it is 38 degree C so very hot!!
-- Edited by Debbiesap on Friday 30th of November 2012 10:49:50 PM
-- Edited by Debbiesap on Friday 30th of November 2012 10:51:42 PM
Thanks for all the help you gave me with the ratio's for partnerships. Will let you know if I pass the exam - but you sure helped me
We did an online exam which obviously the computer marks!. If you got asked this question -
= total salaries to be credited to partners $48,000
would you divide that figure by 2 (there are two partners) or allocate it to each partner. Interested in how you would interpret this - as I got marked wrong on my interpretation. (Will let you know after I hear back from you .
I know whis is more exam related, but know you are all experts and can hopefully help with what is a mark that is now bugging me!
I would allocate the relevant percentage of the $48k to each partner as the division may not be 50:50 and they may not have both been in the practice for the same amount of time.
Was there more to the question than that as it seems that there should be.
I hate the idea of computerised exams as you cannot write down in the answer booklet your understanding of the question.
Hope you have a good weekend as well,
talk soon,
Shaun.
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
