Maraid, Wendy and Diane have been in partnership for a number of years sharing profits _25_ , _ 25_ and _ 15_ , respectively. They decide to form a limited company on 1 January 20X9, called McKee Ltd, to carry on the business. The statement of financial position of the partnership on 31 December 20X8 is as follows:

Additional information
The updated statement of financial position information at 31 December 20X8 is as follows:
1. The land is valued at £210,000 on 31 December 20X8.
2. A machine that was purchased for £10,000 on 1 January 20X6 is now considered to be worthless. Machines are depreciated using the sum of digits method over a period of four years. On 1 January 20X9 the partners considered that this machine would have a residual value of £2,000. (The figures in the statement of financial position above have been adjusted for 20X8’s depreciation charge.)
3. The financial statements for the period ended 31 December had omitted the accountancy fee for that period of £3,000.
4. During a review of the inventory on 31 December 20X8, items valued in the books at £9,000 were considered to be worth £1,000.
5. The partners received information that one of their customers, Seamus, is declared bankrupt. On investigation, it is estimated that Seamus will only be able to pay 20p for each £1 he owes. Seamus owes the partnership £50,000.
6. A full year’s interest is still outstanding and has not yet been accrued in the above draft figures.

Required
Provide the relevant entries required for amending the statement of financial position to take account of the new up-to-date information and prepare the new updated statement of financial position.

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Statement of financial position for Maraid, Wendy and Diane as at 31 December 20X8 Cost Dep'n NBV £ £ ASSETS Non-current assets Land Plant and equipment Fixtures and fittings Current assets Inventories Trade receivables Allowance for irrecoverable debts Bank Cash Total assets EQUITY AND LIABILITIES Owners' equity Capital accounts: - Maraid - Wendy - Diane Total equity Non-current liabilities 10% Loan Current liabilities Trade payables Total equity and liabilities 190,000 40,000 18,000 248,000 23,650 8,000 31,650 186,490 (12,000) 190,000 16,350 10,000 216,350 38,000 174,490 20,500 510 233,500 449,850 84,950 45,000 30,000 150,950 120,000 160,900 449,850