Capital account management

[Guest]

I need to manage a capital account for investors -
The acct will have contributions from investors and will pay out a dividend
based on ownership % - I will need a program that will calculate the %
ownership of each partner, and change that ownership % as new partners come
in or out. Each partner will be paid out their percentage of net income on a
quarterly basis -
Any ideas how to manage such a capital account?

 

[Guest]

Depends on a number of factors, not the least of which is the
frequency/number of transactions through which ownership changes. If those
events are rare, then handling it all within a simple spreadsheet is likely
to be feasible.

It gets more complicated when you have more and more investors moving in &
out within a quarter, for you then have to determine ownership percentages
for any number of partial periods and try to allocate income for each of
those partial periods.

In the either case you will need to track the dates on which ownership
changes occur and calculate day-weighted ownership percentages for each
quarter.