=+The partnership agreement provided that profits should be shared threefifths to Scott and two-fifths to King, after provision for salaries at the annual rate of £630 to Scott and £420 to King and interest on the foregoing capitals introduced at 6% per annum. The cash account of the combined business for the year ending 31st December, 1962 was as follows:

Trading Receipts 23,560 Goods purchased for resale 16,432 Bank drawn 14,963 Running Expenses 3,526 Personal withdrawals: Scott £720 King 380 1,100