QUESTION 6 The following is a statement of financial positions as at 31 December 2020 of Chipo and Musa who shared profits and losses in the ratios two-thirds to one third respectively. From 1 January 2020 the profit and loss sharing ratio is to be altered to Chipo one-half and Musa one half. Statement of Financial Position as at 31 December 2020 K K Premises at cost 65,000 Equipment at cost less depreciation 15.000 80,000 Inventory 20,000 Accounts receivables 12,000 Bank 8,000 40,000 Total Assets 120,000 Capital: Chipo 70.000 Musa 50,000 Total capital 120,000 The assets were revalued on 1 January 2020 to be: Premises K90,000; Equipment K11,000. The other asset values were unchanged. Required: Required: a. Explain in detail the term goodwill and explain the conditions in which goodwill can arise in a partnership. (3 marks) b. Outline the advantages and disadvantages of a partnership (3 marks c. Show the following accounts: 1. Revaluation account (4 marks Premises account (3 marks) iii. Equipment account (3 marks) Capital account (4 marks) Total 20 Marks ii. iv