Utara Management Consulting is a partnership owned by Dr. Ahmad and Dr. Basir. They share profits and losses equally. As at 31 December 2013, the statement of financial position of the partnership is as follow:

Utara Management Consulting

Statement of Financial Position

As at 31 December 2013

Assets

RM

Liabilities

RM

Cash

80,000

Total liabilities

50,000

Other assets

160,000

Equities

Dr. Ahmad Capital

90,000

Dr. Basir Capital

100,000

Total assets

240,000

Total liabilities and equity

240,000

On 1 January 2014, the partnership admitted Dr. Fuad as a new partner with a 20% interest in the partnership. Dr. Fuad invested RM50,000 in the business. A bonus for the admission of the new partner shall be credited to Dr Ahmad and Dr Basir capital account equally. The bonus amount is the difference of Dr Fuad capital invested with 20% of the net asset inclusive the new capital. After the admission, the partners agreed to share profits and losses based on the ratio of 4:4:2 for Dr. Ahmad, Dr. Basir and Dr. Fuad, respectively. For the year ended 2014, the partnership earned a profit of RM100,000.

After a year in the partnership, Dr. Fuad had a disagreement with the Dr. Ahmad and Dr Basir. Consequently, he decided to retire from the partnership on 1 January 2015. On this date, the book value of other assets was RM180,000. The current market value of other assets was RM190,000 and the partners agreed to revalue the other assets to the current market value. Dr Fuad was so eager to leave the business and he was willing to receive cash less than his owner's equity value after the revaluation. The partnership agreed to pay Dr. Fuad RM60,000 upon his withdrawal. The remaining balance of Dr. Fuad's share was equally allocated to Dr. Ahmad and Dr. Basir.

REQUIRED:

(a)Prepare the journal entries to record the admission of Dr. Fuad as a new partner.

(b)Prepare the journal entry to allocate the profit to the partners' capital accounts

(c)Prepare the journal entries to record the assets revaluation and Dr. Fuad's withdrawal from the partnership.