The XYZ Partnership has the following balance sheet at January 1, 2018, prior to the admission of new partner, E.

Assets	Amount $	Liabilities + Capital	Amount $
Cash & CA	49,000	Liabilities	592,000
Land	534,000	A capital	55,000
PPE	394,000	B capital	32,000
		C capital	107,000
		D capital	191,000
	977,000		977,000

E contributes $25,000 into the partnership for interest which is 30% of PPE as agreed. The four original partners share profits and losses equally. Use the bonus method for the calculations.

Requirement: (round off decimal places)

1. Pass journal entry to record the admission of E.
2. Draw the balance sheet dated December 2018.