Question 5 Bryan and Belinda have agreed to combine their sole trader businesses into a partnership trading as Biztech. They have agreed to have capital account balances equal to the fair value of the net assets contributed: Fair Value Cash at bank Bryan $20,000 16,200 9,800 32,000 Belinda $10,000 19,800 12,200 Accounts receivable Inventory Equipment Vehicle Accounts payable Bank loan 40,000 8,000 22,000 The Biztech partnership agreement provides for the following terms for distributing profit: Salaries of $25,000 for Bryan and $20,000 for Belinda. Interest of 10% p.a. on capital balances. Remaining profit/loss allocated equally. Required: a. Prepare the general journal entries necessary to record the contribution of the assets and liabilities to the partnership on 1 July 2018. b. As at 30 June 2019, Bryan's capital account balance was $70,000 and Belinda's was $60,000. Prepare a schedule showing the division of partnership profit between the two partners when partnership profit was $75,000 for the year ended 30 June 2019. On 1 July 2019, the partners agree to admit Brendan as ew partner. Brendan has agreed to invest $50,000 cash into the partnership in return for a 25% share of the new partnership. On the date of admission, the old partnership between Bryan and Belinda has total capital of $130,000. Prepare the general journal entries to record the admission of the new partner. (4 + 6 + 6 = 16 marks)