30 M Question 1 Leonard and Robert have been trading as partners for some time sharing profits and losses in the ratio 2:1 On 29 February 2020 their statement of financial position was as follows: ASSETS NS Property Vehicles Furniture Goodwill 100 000 20 000 10 000 30 000 000 Inventory Accounts receivables Bank Taal 19 000 289 000 EQUITY AND LIABILITIES Capital account Leonard Robert ISO 000 75 000 6 000 Current accounts Leonard Robert Non current Loan is 10 000 Current Accounts payables 14 000 289 000 On 1 March 2020, they decided to admit Laurinda to the partnership on the following conditions 1. The assets have be revalued as follows: NS Furniture 8 500 Goodwill Inventory 45 000 45 000 17 000 130 000 Property 2. An allowance for credit losses of NS 3 000 was to be created 3. Laurinda will obtain 1/5 share of the partnership and it was agreed that she would pay a premium for goodwill for her share. 4. Leonard and Robert will share the remaining profits in the ratio 3:2. Leonard and Robert must make cash payments or withdrawals in order to get their balances in line with their profit sharing ratios. 5. Goodwill should not be disclosed in the statement of financial position after the admittance of Laurinda. MARKS REQUIRED a) Calculate the capital amount that Laurinda must contribute for 1/5 share in the partnership b) Calculate the new profit sharing ratio of the partners after the admission of Laurinda. c) Prepare the capital accounts of the partners in columnar format. Draft the statement of financial position immediately after the admission of Laurinda to the partnership TOTAL MARKS 30