Gill and Zaahir are in the business of supplying and installing solar panels in the form of a partnership trading as Solar Installations. Gill and Zaahir share profits and losses in the ratio 1:2 respectively. On 31 May 2023 the following information was extracted from the accounting records of the partnership:

Additional information

- Gill and Zaahir agreed to admit Brian as a new partner from 1 June 2023.

- Brain will contribute the following to acquire a third of the net asset share of the partnership:

Cash.......................................................................R23 200

Solar Installation Equipment........................R130 000

- Gill and Zaahir agreed to relinquish the 1/3 share equally.

- All other assets were revalued before admitting Brian to the partnership.

- A valuation profit was correctly calculated at R68 400

Question 1

Which one of the following alternatives represents the new profit-sharing ratio after the admission of Brian into the new partnership? a.

3:2:1

b.

2:1:2

c.

1:3:2

d.

2:3:1

Question 2

Assuming Gill and Zaahir agree to relinquish the 1/3^rd share in terms of their existing profit-sharing ratio, which one of the following alternatives represent the new profit-sharing ratio after the admission of Brian into the new partnership?

a.

2:3:1

b.

1:3:2

c.

3:2:1

d.

2:4:3

Question 3

Which one of the following alternatives represents the correct balance in the capital account of Gill after the valuation of assets and prior to the admission of Brian?

a.

R148 600

b.

R167 450

c.

R112 100

d.

R68 500

Question 4

Which one of the following alternatives represents the correct balance in the capital account of Zaahir after the valuation of assets and prior to the admission of Brian?

a.

R122 350

b.

R147 700

c.

R140 150

d.

R71 700

Question 5

Which one of the following alternatives represents the correct amount of goodwill in the accounting records of Solar Installations after the admission of Brian?

a.

R273 000

b.

R46 600

c.

R153 200

d.

R459 600

Question 6

Which of the following journal entries is correct for recording the capital contribution of Brian on the 1^st June 2023:

a.

Debit Capital: Brian R153 200; Credit Bank R23 200; Credit Equipment R130 000

b.

Debit Capital: Brian R153 200; Credit Equipment R153200

c.

Debit Bank R153 200; Credit Capital: Brian R153 200

d.

Debit - Bank R23 200; Debit - Equipment R130 000; Credit Capital: Brian R153 200

Gill and Zaahir are in the business of supplying and installing solar panels in the form of a partnership trading as Solar Installations. Gill and Zaahir share profits and losses in the ratio 1:2 respectively. On 31 May 2023 the following information was extracted from the accounting records of the partnership