Amelia and Ben are in partnership sharing profits and losses equally. They decided to admit Chloe as a partner on the following terms: (1) (2) (3) (4) Goodwill would be valued at $60,000 and recorded in the partnership books. The value of non current assets would be increased by $1,500 and the value of inventory reduced by $300. Chloe would intoduce sufficent cash so that her capital would be equal to that of Ben after Ben's capital has been adjusted to allow for the introduction of goodwill and the revaluation of other assets. The new profit sharing ratio between Amelia, Ben and Chloe would be 4:3:3 respectively. The summary Statement of Financial Position of Amelia and Ben immediately prior to the admission of Chloe was as follows: Assets excluding bank and cash Bank and cash $ 150,000.00 20,000.00 170,000.00 Current Liabilities Capital - Amelia Capital - Ben 50,000.00 80,000.00 40,000.00 170,000.00 (a) REQUIRED Prepare journal entries including bank to record the admission of Chloe. A revaluation account is not to be used. (b) Prepare the opening summary Statement of Financial Position of the new partnership. Shortly after the commencement of the new partnership it was decided to write off the balance on the Goodwill account. REQUIRED (c) Prepare a journal entry to record the writing off of goodwill Assets are often revalued when a new partner is admitted to the partnership or an existing partner retires. State why such a revaluation is necessary (d) (e) Name one other instance when a revaluation of partnership assets might be necessary.