Angela, Betty and Charis have been in partnership for a number of years. selling cosmetics and hair products. During December 2019, Betty indicated that she no longer wanted to be as involved in the daily . running of the business Their original partnership agreement stated that: Each partner is to receive a salary allowance of R72 000 per annum All partners are to receive interest on fixed capital accounts at 8% per annum Remaining profits or losses are to be shared in the ratio 4:2 1. The post-closing trial balance of the partnership at 31 December 2019 is as follows: DR CR R R Capital: Angela 80 000 Capital: Betty 60 500 Capital: Charis 36 800 Current account: Angela 18 150 Current account: Betty 2 650 Current account Charis 14 700 Accounts payable 45 150 Land, at cost 80 000 Equipment, at cost 36 850 Accumulated depreciation Equipment 9 550 Goodwill 15 000 Inventory 78 000 Accounts receivable 36 200 Allowance for credit losses 3 900 Bank 16 250 R266 850 R266 850 On 1 January 2020, the partners decided to change their partnership agreement as follows: Angela and Charis would receive a salary allowance of R80 000 each per annum. All partners are to receive interest at 10% per annum on fixed capital balance at the beginning of the year (before the application of the new agreement) Angela and Charis are to receive a bonus of 5% each of the profit for the year. Remaining profits or losses are to be shared in the ratio 3: 1:2 2 It was agreed that for the purpose of the above changes, the assets of the business are to be revalued and recorded in the ledger at the agreed value. 3 The assets were revalued as follows: Land, R100 000 Equipment, at R28 500 Inventory, R76 800 Accounts receivable, at carrying amount subject to an allowance for credit losses of R3 200 Goodwill was valued at R25 000. Goodwill will not be recorded as an asset in the books of the partnership 5 Betty is to withdraw R30 000 from her fixed capital balance on 1 January 2020. . . . 6. During the 2020 financial year the partnership traded profitably and the profit for the year amounted to R420 000 REQUIRED: (a) Prepare entries in the general journal of the partnership (without narrations) to record the changes in the partnership agreement on 1 January 2020 (6) After taking (a) above into account, prepare the capital accounts of the partners in columnar format on 1 January 2020 (37) (b) (c) Prepare an entry in the general journal of the partnership (without narrations) to record the share of profit, amongst the partners, at 31 December 2020. (5%) Note: Show all workings clearly. Work to the nearest R1