=+3. •The Rotar Company Limited was formed to purchase the business of Roberts and Taring, who share profits, two-thirds and one-third respectively, and whose Balance Sheet was as follows:

Balance Sheet—Kohtvis and Taring.

Capitals Roberts Taring Creditors Bills Payable Loan Account 12,000 7,000 Goodwill 2,000 Freehold Property 8,000 19,000 Plant and Machinery 5,000 5,700 Stock 4,000 1,900 Debtors £3,100 400 Less Provision 200 2,900 Bills Receivable 1,800 Investments 2,000 Cash 1,300

£27,000 £27,000