James and Andrew trade in partnership and share profits in the proportion 3 to 2 after deducting salaries of £6000 for James and £8000 for Andrew. Net profit for the year to 31 May 1984 was £30 000.

The division of profits between the partners is:

(a) £ 15600 James and £ 14400 Andrew;

(b) £18000 James and £12000 Andrew;

(c) £17600 James and £12400 Andrew;

(d) £12400 James and £17600 Andrew.

Use the following information to answer Questions 8 to 10 Bill, Benn and Brown trade in partnership sharing profits in the proportion 3:2: I.

Inaddition, Benn receives a salary of £3000 per annum. Net profits for 1981, 1982 and 1983 were £24000, £27300 and £28 500, respectively.