This information relates to questions 8 and 9: Tick and Tack are in partnership, trading as Time Traders, and they share the profits/losses in the ratio of 2:1 respectively. For the purpose of admitting Minnie to the partnership on 1 March 2020 Tick and Tack, valued the partnerships assets as follows: The land and buildings with a carrying amount of R1 650 000 were valued at a fair value of R2 000 000, and the furniture and equipment, with a carrying amount of R640 000, were valued at a fair value of R620 000. Debtors amounted to R60 000. Tick and Tack decided to provide for credit losses of R7 000 on debtors. Bank amounted to R25 000. Minnie contributed a delivery vehicle valued at R460 000 and cash amounting to R140 00 for a one fifth share in a partnership. Tick, Tack and Minnie will share in the profits/losses of the new partnership, which will trade as Nano Traders, in the ratio of 2:2:1 respectively.

QUESTION 8 Which one of the following alternative is the correct goodwill calculation for Time Traders? 1. R300 000 2. R327 000 3. R295 000 4. R302 000

QUESTION 9 Which one of the following alternatives discloses the correct entry (narration omitted) in the general journal of Time Traders to record the valuations to be disclosed in the valuation account? 1.

2020 Feb	28		Debit	Credit
		Land and buildings	350 000
		Allowance for credit losses		7 000
		Furniture and equipment		20 000
		Valuation account		323 000

2.

2020 Feb	28		Debit	Credit
		Allowance for credit losses	7 000
		Valuation account	363 000
		Land and buildings		350 000
		Furniture and equipment		20 000

3.

2020 Feb	28		Debit	Credit
		Land and buildings	350 000
		Furniture and equipment	20 000
		Allowance for credit losses		7 000
		Valuation account		363 000

4.

2020 Feb	28		Debit	Credit
		Valuation account Allowance for credit losses Land and buildings Furniture and equipment	377 000
				7 000
				350 000
				20 000