Wong, Ong and Ng are independent interior designers who had been trading in active opposition to one another for some years. They decide to form a partnership, WON Design, as from 1 January 2021. The agreement set out the following basic arrangements: Wong to contribute $8000 in cash, computers valued at $10 000, and debtors of $12000. Ong to contribute a lease of premises used by him, such a lease to be regarded as having a capital value of $12 500, computers of $10 000 and $6000 in cash. Ng to contribute computers valued at $13 750 and to act as managing partner at a salary of $20 000 per year. Interest for the period is to be allowed partners at the rate of 8% p.a. on beginning capital but is not charged on drawings. Profits or losses to be shared in the same proportions as capital contributed. Required: a. Prepare the journal entries necessary to open the records of the partnership. (Ignore GST.) b. Assuming in the first year that the partnership makes a profit of $75 000, show how this profit would be allocated to partners. C. Discuss the differences between "Partners' advances" and "Partners' Capital