Note 7 — Chapter XLIX · ADVENTURE SALES

Whatever agreement is made by the partners for interest adjustments governs. In practice the usual procedure in a case of this kind would be to allow C interest on the $890 cash advanced by him for expenses from date of advance to date of settlement, and to charge him with interest on all moneys received by him from dates of the various sales to date of settlement. To simplify calculations, it is assumed in the illustration that C’s use of funds received from sales during the first five months approximately compensates him for the $890 advanced by him.