QUESTION ONE Opaye, Opele, and Okai were in partnership sharing profits and losses in the ratio 5:3:2 respectively. The draft Statement of Financial Position as at 30 June, 2010 was as follows: Non-current assets Freehold premises Plant & equipment Motor vehicles GHS GHS 8,000 150 4,200 2.100 14,300 Current assets Inventories Trade receivables 3,600 Less provision for doubtful debts 5,200 (400) Bank balance 4,800 8.300 16.700 Capital and liabilities 31.000 Loan-Opaye 3,000 Provision for repainting of premises 1,400 Trade payables 4.600. 9,000 Capital balances Opaye Opele Okai 12,000 6,000 4.000 22.000 31.000 Opaye retired on the 30th of June 2010 and Opele and Okai continued in partnership sharing profits and losses in the ratio 60% and 40% respectively. Opaye's loan was repaid on 1" July 2010 and it was agreed that 10% of the outstanding balance due him should be paid as soon as the amount was computed, the remaining on loan to the partnership. It was agreed that the following adjustments should be made to the Statement of Financial Position as at 30 June 2010: i) ii) iv) The freehold premises to be revalued at GHS15,000 and the plant and equipment at GHS3,500 Opaye to be charged GHS400 for one of the motor vehicles taken over by him, this vehicle having a book value of GHS450 The provision for repainting of the premises to be increased to GHS2,000 GHS400 to be written off the inventories in respect of damaged and obsolete items included therein 110