Rumors fly when Captain Peacock gets too friendly with Mr. Rumbold's secretary at the Christmas party, and things get really out-of-hand when it seems they might have spent the night together.

Captain Peacock's wife works at Grace Brothers, as Mr. Rumbold's secretary. He is intensely jealous and is absolutely convinced that the two of them are having an affair.

Mrs. Slocombe sells her home-made perfume. After a misunderstanding, Mrs. Peacock finds Captain Peacock without his pants (perfume had spilled on them) and the ill-fated trousers in the hands of Mr. Rumbold's secretary.