Additional information: Upon retirement the following transactions declaration has been agreed: David took over machineries valued at RM340,000 The partnership will settle the capital balance to David in cash and the current account remained as a loan to the partnership at an interest rate 10% per year. The revaluation of assets: Building RM1,300,000 Inventories RM 140,000 Account Receivables RM 150,000 For the purpose of David's retirement, the amount of goodwill has been determined as RM200,000 based on average of annual profit for the last five years. Required: a) Prepare the following accounts: i. Revaluations ii. Goodwill iii. Partners' Current Account iv. Partners' Capital Account b) Prepare the Statement of Financial Position as at 31 December 2018, Alam, David and Ridza have been in a partnership business for six years, sharing profits and losses in a ratio of 2:6:2, respectively. However, David decided to retire on 31 December 2018. The new profits and losses ratio is 1:1. The following is a Statement of Financial Position of the partnership as on David's retirement. Adam and Partners Statement of Financial Position as at 31 December 2018 RM RM RM Non Current Assets Building 1,000,000 400,000 1,400,000 180,000 Machineries Current Assets Inventories Account Receivable (-) Allowance for Doubtful Debt Bank 200,000 20,000 180,000 1,100,000 1,460,000 Current Liabilities Accounts Payable Net Current Assets 180,000 1,280,000 2,680,000 Equity and Liabilities Capital Account Adam David Rossa 400,000 600,000 400,000 1,400,000 Current Account: Adam David Rossa 120,000 120,000 240,000 480,000 Long Term Liability Loan (Rich Bank) 800,000 2,680,000 ACCT1121 FA1 Partnership