Blunt, Dodds and Fuller are in partnership. They shared profits in the ratio 1:3:2. It is decided to admit Baxter. It is agreed that goodwill is worth 60,000, but thatthis is not to be brought into the business records. Baxter will bring 24,000 cash into the business for capital. The new profit sharing ratio is to be Blunt 4: Dodds 5: Fuller 2: Baxter 1. The statement of financial position before Baxter was introduced was as follows: Assets (other than in cash) 66,000 Cash 1,200 Total assets 67,200 Accounts payable (8,400) Net assets 58,800 Capitals: Blunt 14,000 Dodds 24,400 Fuller 20,400 58,800