Self-test Smith and Jones decided to go into partnership and that they would contribute

£30,000 and £20,000 respectively. It was agreed that Jones would work in the business and receive a salary of £5,000 p.a. Interest of 10 per cent p.a. was to be allowed on the capital accounts and the partners were to share the remaining profit in the ratio of 60 per cent for Smith and 40 per cent for Jones.

The business makes a profit of £140,000 in the first year. Show the amount to be credited to each partner.