Practice Activity 11.1 Estimation of the total capital of a partnership

A partnership firm has been formed for the purpose of carrying on legal services cutting across oil and gas, real estate, banking, commercial activities, taxation, and so on.

The firm’s capital will consist of contributions from ten partners. The partners are to contribute as follows:

Five partners will contribute ₦578,900 each. Three partners will contribute ₦200,800 each. Two partners will contribute ₦100,700 each.

Required: What is the total capital of the partnership firm?

A suggested solution to practice activity 11.1

Total capital = (₦578,900 * 5) + (₦200,800 * 3) + (₦100,700 * 2)

= ₦3,698,300