ACCA FA2 PARTNERSHIP INTEREST
Malik and Vasha are in partnership. The partnership agreement provides for interest on capital to be paid at a rate of 11% per annum.
You have the following information:
| Malik | Vasha | |
| $ | $ | |
| Capital Balance at 1 Nov 2010 | 30,000 | 60,000 |
| Capital Introduced on 1 April 2011 | 5,000 | 7,000 |
What is the total value of interest on capital for the year to 31 October 2011?
Suggested Solution.
| Malik | Vasha | Total | |
| $ | $ | $ | |
| Capital Balance at 1 Nov 2010 | 30,000 | 60,000 | 90,000 |
| Capital Introduced on 1 April 2011 | 5,000 | 7,000 | 12,000 |
| Total | Interest | |
| One year interest at 11% | 90,000 | 9,900.00 |
| 7 months' interest at 11% | 12,000 | 770.00 |
| Answer | 10,670.00 |
To do the same topic again in ACCA FA2 partnership interest
To do another topic in ACCA FA2