=+12. *Hale, Neath and Redcar, who had been carrying on business in partnership, sharing profits and losses in the proportions of one-half, one-third and one-sixth respectively, decided to dissolve partnership on 30th June, 1962.

The balance sheet of the firm immediately before the dissolution was as follows:

£ £

3,095 Goodwill 1,000 2,304 Furniture 250 300 Debtors 2,795 370 Stock 2,813 1,000 Bank 211 Hale—Capital Account Neath Redcar „ „

Creditors Loan Account—Hale

£7,069 £7,069