Albert Tan, Mariam and Johny are partners in a firm sharing profits and losses in the ratio of 2:4:4. Mariam announced her decision to retire on 31 December 2015 even though she doesnt plan on retiring until age 60. She made the tough decision as she had to accompany her husband to further his study in United Kingdom. The following is a Statement of Financial Position of Albert Tan, Mariam and Johny Partnership as at 31 December 2015:

Albert Tan, Mariam and Johny Partnership (Before Mariams retirement)

Statement of Financial Position as at 31 December 2015

		RM	RM
ASSETS
Non-Current Assets
Building			150,000
Motor vehicles			100,000
Total Non-Current Assets			250,000
Current Assets
Inventory			40,000
Debtors			40500
Bank			164,500
Total Current Assets			245,000
Total Assets			495,000
EQUITY AND LIABILITIES
Capital Accounts
Albert Tan		100,000
Mariam		175,000
Johny		125,000	400,000
Current Accounts
Albert Tan		15,000
Mariam		15,000
Johny		30,000	60,000
Total Equity			460,000
Current Liabilities
Creditors			35,000
Total Current Liabilities			35,000
Total Equity and Liabilities			495,000

Mariam requested to take possession of the motor vehicles valued at RM85,000 upon her retirement. Albert Tan and Johny agreed to her request. The partnership also agreed to settle Mariams capital balance in cash. The balance in the current account remained as a loan to the partnership at an interest rate of 5% per annum. The revalued amount of building was RM225,000. The revalued amount for inventory and debtors were RM35,000 and RM37,500 respectively.

On the date of Mariams retirement, Yosef joined the partnership. He contributed RM90,000 cash as capital and RM25,000 for his share of the goodwill. According to the new partnership agreement, the profit-sharing ratio for Albert Tan,Yosef and Johny is 2:2:4. Goodwill was to be calculated on the basis of two times of the average profits of the last five years. The profit for the last five years were as follows:

Year RM

2010 37,500

2011 30,000

2012 55,000

2014 57,500

2015 70,000

REQUIRED:

1. Prepare the revaluation account as at 31 December 2015.
2. Calculate the goodwill and prepare the goodwill account as at 31 December 2015.
3. Prepare the partners capital account for the year ending 31 December 2015.
4. Prepare the Statement of Financial Position of the new partnership as at 31 December 2015.