=+Interest on capital is charged on the opening capital accounts of Jones and Lewis at}3%

and 5% respectively. Hopkins receives an annual salary of €15,000. The financial year end of the partnership is 31 December each year.

On 1 July 2001 Clarke was introduced as a fourth partner in the business. The revised profit-sharing ratios are as follows.

Jones 30%

Hopkins 20%

Lewis 20%

Clarke 30%