Bill, George, and Obama were partners with capitals of

£80,000, £100,000, and £20,000, respectively. They shared profits and losses in proportion to their capitals. George retired from the partnership on 31 December 20x7. The partnership deed provided that, in the event of dissolution, goodwill would be valued at three years’ purchase of the average partnership profits of the last four years. These profits were £22,900, £34,100, £19,600, and £23,400. The SFP of the partnership on 31 December 20x8, prior to dissolution, was:

Requie:
1. A statement showing the calculations for the value of goodwill.
2. A goodwill account for the old partnership.
3. An SFP for the new partnership of Bill and Obama as of 1 January 20x8.