intermediate accounting

QUESTION TWO Santa and Claus are in Partnership business sharing profits and losses in the ratio of 2:1. The statement of financial position of the firm as at December 31,2020 is shown below. SANTA \& CLAUS Statement of Financial Position as at December 31, 2020. On January 1, 2020, the partners agreed to admit Christmas into the firm in order to open another sales outlet. Lucy was to contribute GHC220,000 as capital. He agreed to contribute his capitals as follows: The three partners agreed to share profit and losses equally and current account balances are to be transferred into capital accounts. The following adjustments are to be made in the asset values: i. Inventory should be written down by 10% ii. Land and building should be valued at GHC 240,000 and plant and machinery at GHC 200,000 . The carrying value of the motor vehicles approximates the fair value. iii. In addition to the revaluation of the tangible non-current assets, internally generated goodwill prior to the admission of Lucy was assessed at GHC 48,000 . This is to be adjusted through the partners' capital accounts and goodwill is not to be carried on the statement of financial position. You are required to prepare: i. Revaluation account ii. Partners' capital account iii. Statement of financial position for the new firm