Partnership Accounts

John Jones started in business as a self-employed plumber five years ago after completing his apprenticeship. He began with a small amount of money which he had saved, and worked long hours to build up contacts and establish a very good reputation for high quality work. After three years he was doing very well, in fact too well! He was having difficulty coping with the number of jobs he was getting, never mind dealing with the paperwork and VAT and trying to spend some time with his family. So he employed Kevin Crane to help him with the practical work. Kevin was an excellent worker — bright, hardworking and easy to get on with. He was also an expert on central heating systems, an area in which John had not got involved. With Kevin’s help, John’s business had continued to grow steadily but now, two years later, Kevin tells John that he wants to leave to set up his own business.