Payment of interest and salary

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Mr Leakey and Mrs Leakey formed a partnership business on 1 April with invested capital of £50,000 and £70,000 respectively. The profit for the 9 months ended 31 December was £24,300. Interest on capital was paid to the partners at 5% per annum.

(a) Calculate the interest paid to each of the partners for the 9-month period. Mrs Leakey received a salary of £1,350 per month.

(b) Calculate the salary received by Mrs Leakey for the 9-month period.

(c) Calculate the profit remaining after payment of interest and salary.

Reference no: EM131071183

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