QUESTION 5 Prince and Quinton are partners and share profits four-sevenths and threesevenths, respectively. At 1 May 2015 , they agree to take Sarah into the partnership and at that date, the balance sheet of the enterprise is as follows: Prince and Quinton Balance Sheet as at 1 May 2015 The following agreement was made and carried out: - Sarah is to pay R11 200 for her share of goodwill, this sum is to be immediately withdrawn by Prince and Quinton. - Sarah is to bring in R8 000 as her capital. - Land and buildings, plant and machinery, and furniture to be reduced by 20%, inventory to be revalued at R17400 and provision of 5% to be made for doubtful debts. - The proportions of the new partnership to be Prince four-ninths, Q three-ninths, S two-ninths; any excess of capital of Prince and Quinton to be transferred to loan accounts to be opened in their names. Required: - Show all journal entries. - Prepare the Revaluation account. QUESTION 5 Prince and Quinton are partners and share profits four-sevenths and threesevenths, respectively. At 1 May 2015 , they agree to take Sarah into the partnership and at that date, the balance sheet of the enterprise is as follows: Prince and Quinton Balance Sheet as at 1 May 2015 The following agreement was made and carried out: - Sarah is to pay R11 200 for her share of goodwill, this sum is to be immediately withdrawn by Prince and Quinton. - Sarah is to bring in R8 000 as her capital. - Land and buildings, plant and machinery, and furniture to be reduced by 20%, inventory to be revalued at R17400 and provision of 5% to be made for doubtful debts. - The proportions of the new partnership to be Prince four-ninths, Q three-ninths, S two-ninths; any excess of capital of Prince and Quinton to be transferred to loan accounts to be opened in their names. Required: - Show all journal entries. - Prepare the Revaluation account