200 160 40 18 40 60 41 268 8 Question 2 Priya, Salmiah and Tee were in partnership sharing profits and losses in the ratio 3:1:1. The draft statement of financial position of the partnership as at 31 May 2021 is shown below: Cost Provision NBV RM7000 RM000 RM000 Non-current assets Land and buildings Furniture 30 12 Motor vehicles 20 192 Current assets Inventory 23 Trade receivables 42 1 Prepayments 2 Cash 10 76 Total assets Owner's equities Capital Priya 100 Salmiah 60 Tee 40 Current: Priya 24 Salmiah 10 Tec Non-current liabilities Loan - Priya 8 Current liabilities Trade payables 15 Accruals 3 Total current liabilities 18 Total liabilities and equities 268 Additional information: 1. Priya decided to retire on 31 May 2021. However, Salmiah and Tee agreed to form a new partnership out of the old one, as from 1 June 2021. They agreed to share profits and losses in the same ratio as in the old partnership 2. Upon the dissolution of the old partnership, it was agreed that the following adjustments were to be made to the partnership statement of financial position as at 31 May 2021 Land and buildings were to be revalued at RM200,000. (mFurniture was to be revalued at RM5,000. an Priya agreed to take over one of the motor vehicles at a value of RM4,000, the remaining motor vehicles being revalued at RM10,000 (iv)Inventory was to be written down by RM5,000 (v) Trade receivable was to be revalued at RM38,000. (vi)A further accrual of RM4,000 for business expenses was to be made 3. It has not been the practice of the partners to carry goodwill in the books of partnership Goodwill was to be valued at RM90,000 4. It was agreed that Priya's old loan of RM8,000 should be repaid to her on 31 May 2021. but any further amount owing to her as a result of the dissolution of the partnership should be left as a long-term loan in the books of the new partnership 5. The partner's current accounts were to be closed and any balances on them as at 31 May 2021 were to be transferred to their respective capital accounts. Required: (a) Prepare the revaluation account as at 31 May 2021 (5 marks) (1) Prepare the partners' capital accounts as at the date of changes in the partnership, and bring down any balances on them in the books of the new partnership (10 marks) () Prepare Salmiah and Tee's statement of financial position as at 1 June 2021. (10 marks) [Total: 25 Marks)