QUESTION $1$

Prince and Quinton are partners and share profits four$-$sevenths and three$-$

sevenths, respectively. At $1$ May $2017,$ they agree to take Sarah into the

partnership and at that date, the balance sheet of the enterprise is as follows

Princeand Quinton

Balance Shect as at $1$ May $2017$

The following agreement was made and camiod out:

Sarah is to pay R$11200$ for her share of goodwill; this sum is to be

immediately withdrawn by Prince and Quinton.

Sarah is to bring in R$8000$ as her capital.

Land and buildings, plant and machinery, and furniture to be reduced

by $20\%,$ inventory to be revalued at R $17400$ and provision of $5\%$ to

be made for doubtful debts.

The proportions of the new partnership to be Prince four$-$ninths, Quinton

three$-$ninths, Sarah two$-$ninths; any excess of capital of Prince and

Quinton to be transferred to loan accounts to be opened in their names.

You are required to show the following:

$($a$)$ all journal entries

$($b$)$ the revaluation account