A partner has an opening balance on his current account of £2,000 (credit). He introduces £15,000 worth of capital, withdraws £28,000, is awarded £500 interest on his capital and is allocated profits for the period of £30,000. What is the closing balance on his current account?

Question

Quizplus · Accepted Answer

The closing balance is calculated as: Opening balance (£2,000) + Capital introduced (£15,000) - Withdrawals (£28,000) + Interest (£500) + Profits (£30,000) = £4,500.

A Partner Has an Opening Balance on His Current Account