Which one of the following alternatives represents the new profit-sharing ratio after the admission of Mqithwa into the new partnership?

• A.

  7:9:2

• B.

  2:2:1

• C.

  3:1:4

• D.

  7:9:4

  QUESTION 2

  Which one of the following alternatives represents the correct balance in the capital account of Mrebe after the valuation of assets and prior to the admission of Mqithwa?

• A.

  112 950

• B.

  123 200

• C.

  125 400

• D.

  147 900

Given the following information for questions 1 - 4: Mrebe and Johannes are in a partnership trading as KwaQongo Farmers. The partners are sharing profits and losses equally. On 30 July 20.1 the following information was extracted from the accounting records of the partnership: EXTRACT OF GIVEN INFORMATION FOR KWAQONGO FARMERS R Capital - Mrebe.. 105 600 Capital - Johannes... 93 600 Current account - Mrebe (Cr).. 38 400 Current account - Johannes (Dr). 24 000 Mrebe and Johannes decided to admit Maithwa from 1 August 20.1. Maithwa will contribute the following to acquire a fifth of the net asset share of the partnership 1. Cash..... 18000 2. Farming equipment worth. 49200 Mrebe and Johannes agreed to relinquish 20% of their share in profits or losses to Mqithwa in the ratio of 3:1 respectively All other assets were revalued before admitting Mathwa to the partnership. A valuation loss was correctly calculated at.... 37 200