Member Withdrawal - Accumulated Interest
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Member Withdrawal - Accumulated Interest I've read and I think understand the material on how to process a member withdrawal. A nit that seems not to be addressed is the following: - having selected a valuation date and transaction date I get the proper withdraw amount. However we're accumulating some (trivial) interest in a money market which doesn't show up on the brokerage statement until the end of the month (after the withdrawal). Question - shouldn't the withdrawing partner receive a share of that interest (small as it is)? Or, since it isn't credited to the account until after his/her withdrawal it's just not a consideration? Thanks......Jay The latter. Since the interest hasn't been credited by the withdrawal date, the withdrawing partner doesn't receive it.
Conversely, a new member receives a part of any interest earned after the valuation date just prior to his joining up to his entry date.
Ira Smilovitz
In a message dated 06/29/09 23:20:21 Eastern Daylight Time, jsternin@bivio.com writes:
> Question - shouldn't the withdrawing partner receive a share > of that interest (small as it is)? Or, since it isn't > credited to the account until after his/her withdrawal it's > just not a consideration? That's correct. Club Accounting is designed to work on a "cash" basis, not an "accrual" basis. -Jim Thomas |
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