Barney and Wally were partners, trading as B & W Traders. They shared profits and losses in the ratio 3:2. On 1 July 2007 they decided to amalgamate with Mac. On 30 June 2007 the balance sheet of the respective firms were as follows: Mac Barney & Wally Assets Buildings BALANCE SHEET AT 30 June 2007 Barney & Mac Wally RR Owner's equity and Liabilities 100 000 Capital: 20 000 10 000 - Barney 30 000 15 000 - Wally 45 000 20 000 - Mac 40 000 12 000 Creditors 9700 1000 244 700 58 000 Vehicles 127 200 84 700 Goodwill Trading stock Debtors 50 000 8000 32 800 Cash at bank 244 700 58 000 The terms of the amalgamation were as follows: 1. Assets were revalue as follows: Barney & Wally Mac Buildings 120 000 Trading stock 42 000 18 000 Goodwill 45 000 18 000 2. Goodwill was not to appear as an asset in the books of the new partnership. 3. It was agreed that all Mac's assets and liabilities would be taken over, with the exception of Motor vehicles, which were to be taken over and paid for in cash by Mac. 4. The profit- sharing ratio in the new partnership would be: Barney 4 : Wally 3 : Mac 2 5. Capital balances were to be in profit - sharing ratio and based on Wally's balance after all adjustments had been made. Cash had to be paid in or withdrawn by Barney and Barney Mac to that effect. 6. The name of the new firm was to remain B & W Traders. Required (a) Journalise all entries required to adjust and close Mac's books. Narrations are not required (b) Journalise all entries in connection with the amalgamation in the books of B&W Traders. Narrations are not required (c) Show the balance sheet of the new firm on 1 July 2007, after the amalgamation