Mary Question Four Mary &Ann are partners sharing profits and losses in the ratio 3:2. The following balances was from their accounts 31st December 2004 Capital 1,120,000 Ann 640,000 Net profit for the year 244,000 Creditors 480.000 Loan 360,000 Buildings 1,020,000 Plant 840,000 Stock 346,000 Debtors 263,000 Bank 375,000 The partners agree to admit Lucy into the partnership on the following terms; a) Lucy is to bring sh.500,000 as her capital b) The new profit sharing ratio between Mary Ann and Lucy will be 5:3:2 respectively c) Goodwill of the business is sh.160,000 while the buildings and plant at sh.2,200,000 d) And sh.160,000 respectively. Goodwill will be raised in the books for the purpose of admission of Lucy but written immediately in the partners' capital account. e) Mary and Ann are to be credited with 5% interest as capital accounts f) The loan was to be repaid Required; i) Profit and loss appropriation account (4mks) ii) Capital account of the partners (11mks) iii) Balance sheet after completion of above matters (5mks)