Question: Two partners named Smugg and Williamson have decided to take a Mr. Rogers into partnership. Smugg has 116 times as much capital invested in the business as Williamson, and Rogers has to pay down $2,500.00, which sum shall be divided between Smugg and Williamson, so that the three partners shall have an equal interest in the business. How shall the sum be divided?
Answer: We must take it for granted that the sum Rogers paid, $2,500.00, was one third of the value of the business, which was consequently worth $7,500.00 before he entered. Smugg's interest in the business had therefore been $4,500.00 (l\-2 times as much as Williamson), and Williamson's $3,000.00. As each is now to have an equal interest, Smugg will receive $2,000.00 of Rogers's contribution, and Williamson $500.00.
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