Ascertain then the amount of capital originally invested by the partners. We are informed that the amounts withdrawn by them amounted to $30,000 and $40,000 respectively. Add this $70,000 to the present capital and compare with the original capital to ascertain the gross profit for the period.

We are not informed if there are Articles of Partnership, if so, this may settle the division of profits as, unless the contrary be stated, they would be divided equally.

If there are no Articles of Partnership, and it was originally a verbal agreement, the question of the division of profits would have to be settled, and the Accountant would ask for instructions, probably suggesting that their steady and consistent withdrawals would seem to point out, in absence of other evidence, the proportions in which the profit is to be divided, viz., White 3-7 and Moore 4-7.

Assuming that there are Articles, no mention being made of rate of division, then these profits would be divided equally between them, and as this would probably cause a considerable sum to be due the deceased, it may explain the action at law.

This being done, the partners' accounts would be drawn up as follows:

Credit each partner's account with the original capital invested, debit him with his withdrawals and credit him with his share of the profits. The resulting balance will give his share of the present capital. No mention has been made of interest on partners' capital, and unless mentioned in the Articles this would not be taken into consideration.

The report would explain how the profits had been arrived at on the basis of the single entry system; the division of such profits in the proportion to be decided, and the deductions for withdrawals made in the respective accounts.

Question 10.-William Child died on 30th September, 1880, leaving a Will wherein he conveyed his whole Estate to Trustees for the purposes therein set forth.

His four daughters, Maud, Polly, Susie, and Martha survived him and he directed his Executors to divide his Estate equally among them on the youngest attaining her majority.

Until that time the net revenue from the Estate was to be equally divided among the surviving daughters.

Power was given to the Trustees to advance a sum out of the Capital to each of the daughters on their marriage, which sums were to be taken into account upon the division of the Estate. No mention of interest was made.

Maud was married on 30th June, 1882,

Polly was married on 30th June, 1883,

Susie was married on 30th June, 1884,

and each received on the day of her marriage the sum of $10,000 in respect of the power given to the Trustees.

The Executors made a further payment of $2,000 on account of Capital to each of the married daughters on 30th June, 1885, and on each 30th June thereafter until and including 30th June, 1890.

Martha becaume of age on 31st December, 1890, on which date the Capital in the hands of the Trustees was $80,000. All the income from the Trust funds had been equally divided among the four daughters to 31st December, 1890. No Interest had been charged by the Trustees upon any of the advances to the Beneficiaries.

Prepare the accounts of division at 31st December, 1890, and charge interest where you consider that should be done at the rate. of 5%, the net earning power of the Estate.

Capital in hands of Trustees, 31st Dec., 1890.... 80,000 00

CHAPTER IX.

JOINT STOCK COMPANIES.

Question 1.—(a) What are the qualifications for the office of Director of a Company incorporated under the provisions of the "Companies Act "?

(b) How far may these provisions be varied by a By-law of the Company, or otherwise?

A. (a) The persons named as such in the letters patent are the First Directors of the Company, until replaced by others duly appointed in their stead.

No person shall be elected or appointed as a director thereafter, unless he is a shareholder, owning stock absolutely in his own right, and to the amount required by the By-laws of the Company, and not in arrears in respect of any call thereon; and at all times the majority of the directors of the Company shall be persons resident in Canada.

Further, the person appointed must consent to act. A Shareholder who has agreed to act as a Director and does not possess the proper number of shares, must have the same allotted to him before his election to render the same valid.

(b) The Directors may pass a by-law altering the Stock qualification, the number of Directors, etc., as long as the number of the latter is kept between three and fifteen.

Such by-law would only have force (unless confirmed at a general meeting of the Company, duly called for that purpose) until the next annual meeting of the Company, and in default of confirmation thereat, would cease to have force.

Question 2.-What restrictions or conditions require to be observed in seeking incorporation under the "Companies Act" or the Ontario "Joint Stock Companies Letters Patent Act" respectively as to

(a) Capital Authorized.

(b) Capital Subscribed. (c) Capital paid in.

A.-(a) Capital authorized, under the "Dominion Companies Act."

(1) There is no provision made for the issue of Preference Stock. (2) One-half of the proposed Capital Stock must be subscribed for by not less than five shareholders, and 10% in cash paid in thereon. If a Loan Company this amount of cash must not be less than $100,000. The cash also must be deposited in some chartered bank in Canada to the credit of the Receiver-General of Canada, and shall be standing at such credit, and the applicants shall, with their petition, produce the deposit receipt for such amount. If the object of the company is one requiring that it should own real estate, any portion not more than half of the cash referred to, may be taken as paid in, if bona fide invested in real estate suitable to such object, and such real estate is by a valid and sufficient registered deed, duly held by trustees (at least two in number) for the Company, and being of the required value over and above all incumbrances thereon. Charter will not be granted for the construction and working of railways, or to banking or insurance companies. Under each Act the application would show:

The amount of capital stock of the company.

The number of shares and the amount of such shares.

Under the Joint Stock Companies Letters Patent Act.

(1) Preference Stock can be issued.

(2) There are no special stipulations as to capital, except that the application must be signed by five persons at least, who are shareholders.