=+8. IPC and Y are equal partners. On 1st July, 1962, they agree to admit as

=+8. IPC and Y are equal partners. On 1st July, 1962, they agree to admit Ζ

as partner. Ζ is to pay £2,000 as a premium—the money to be left in the business—and to contribute £5,000 as capital. The Balance Sheet of the old firm as at 30th June, 1962, was as follows:

Balance Sheet 30th June, 1962 Capital Accounts—

X £19,000 Y 6,500 Creditors Reserve Accoimt Freehold Property Plant and Machinery Debtors 25,500 Stock Bank 7,500 1,000

£34,000

£

8,500 6,500 11,500 6,700 800

£34,000