=+(ii) Profits are allocated in the partners’ profit-sharing ratio after interest on capital and salaries have been deducted. Interest on capital of 10% per annum for Law and 5% per annum for Order is calculated on the partners’ opening capital accounts. Judge is not entitled to interest on capital.

Agreed partner salaries per annum are as follows:

&

Law 17,000 Order 30,000 Judge 21,000