Aye, Bee and Cee are partners sharing profits and losses 6:3:1. Extracts from the partnership deed are as follows:

1. Interest at the rate of 6% per annum shall be allowed on fixed capital accounts. No

   interest shall be allowed on current accounts but 8% per annum is to be charged on any

   debit balance at the commencement of the year.

2. Goodwill shall be valued at 80% of the average annual profits of the previous three

   years or four years whichever is lower. The following are particulars of the partners accounts:

Aye Bee Cee

Fixed capitals as

at 31st Dec. 07

GH 18,000

9,000 3,000

Balance on current account

as at 31st Dec. 07

GH 5,000 CR 1,000 CR 1,200 CR

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On1st January 2008 the partners agreed to admit Dee into the partnership and he introduced GH3,500 in cash which included his fixed capital of GH3,000. He is to receive a salary of GH1,500 per annum in addition to his share of profit. Aye personally guaranteed that the aggregate of Dees salary and share of profit shall not be less than GH3,000 per annum. The profits sharing ratios are to be 3:3:3:1 respectively.

Agreed profits for goodwill purposes for the past four years are as follows: GH

2007 16,337 2006 10,255 2005 10,758 2004 14,164

No account for goodwill is to be maintained in the books, adjusting entries for transactions between the partners being made in their current accounts.

The draft accounts for the year ended 31st December 2008 before taking Dees salary or interest on partners accounts show a profit of GH17,640. Partners drawings during the year are: Aye GH6,320, Bee GH4,900 and Dee (including salary) GH2,193.