2: (Total 12 marks) Larry and Harry were in partnership sharing profits and losses equally. The Statement of Financial Position drawn up on 31st December 2020 showed the following position: ASSETS Non-Current Assets: Premises Fixtures 253,000 134,100 387,100 Current Assets: Inventories 121,440 Trade and other receivables 88,650 Cash and bank 196,520 406,610 TOTAL ASSETS 793,710 EQUITY AND LIABILITIES Equity Capital: Harry 360,000 Larry 309,600 669,600 Current Liabilities: Payables TOTAL EQUITY AND LIABILITIES 124,110 793,710 Harry retired as from 1st January 2021 and at the same date Barry was admitted to the partnership. For the purpose of these changes the premises were revalued at 280,000, fixtures at 110,000, inventory at 116,000 and goodwill was agreed at 60,000. An allowance for irrecoverable receivables of 2,700 is also to be created. The new valuations are to be included in the business accounts, but no account for goodwill is to be maintained. In the new partnership, profits and losses will be divided in the proportion 80% / 20% between Larry and Barry respectively. Barry introduced cash of 50,000 when he joined the partnership and Harry received payment for his capital in cash but no other cash changed hands between partners in implementing the change. REQUIRED: Show the above changes in the partners' Capital account. (12 marks)