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Prisca and Joan are in partnership sharing profits and losses in the ration 2:1. They agreed to amalgamate their business with that of Osikani as at 31 December 2014. The summarised statement of financial position of the two firms as on that date were as follows Statement of Financial Position as at 31 December 2014 Prisca & Joan Osikani Non-Current Assen: GHE GHE Land and Buildings 8.000 Furniture and Equipment 7.000 3,000 15.000 5.000 Current. Esses Inventory 17,000 7.000 Trade debtors 2.750 2.800 Less: Bad debe provision (750) (500) Cash at bank 4.000 TOTAL ASSETS 38.000 14,300 Capital and Liabilities: Capital Account: Prisca Jean Osikani 21,000 8.000 7,000 Current Liabilities Trade creditors Bank overdraft 9,000 4,000 3.300 38.000 14,300 Additional Information: The terms of the amalgamation were as follows 1. Profits and Losses were to be shared in the ratio of Prisca:Joan:Osikani 2:1.1. 2. The values of goodwill for the two firms were agreed at Prisca & Joan GH 12,000 Osikani GH6.000No goodwill account was to be maintained in the books, but adjusting entries for transactions between the partners were to be made in the purtners capital accounts 3. The new firm was to take over all the assets and discharge all the liabilities of Prisca & Land and Buildings GH11,000 Furniture and Equipment GH6,250 Inventory GH18,500 Debtors GHc2.750 4. Osikani was to collect his own debts and pay his trade creditors. The new fimm was to take over his Furniture and Equipment as well as pay off his overdraft 5. The capital of the new firm was to be GH40,000, contributed in profit and less Sharing ratio. The balance due to be paid in, or withdrawn by cach partner was to be entered in a Current Account Required: a) Close the books of the two businesses, Prisca & Joan, and Osikani. b) Prepare the Statement of Financial Position of the New Fim as at 19 January, 2015. Prisca and Joan are in partnership sharing profits and losses in the ration 2:1. They agreed to amalgamate their business with that of Osikani as at 31 December 2014. The summarised statement of financial position of the two firms as on that date were as follows Statement of Financial Position as at 31 December 2014 Prisca & Joan Osikani Non-Current Assen: GHE GHE Land and Buildings 8.000 Furniture and Equipment 7.000 3,000 15.000 5.000 Current. Esses Inventory 17,000 7.000 Trade debtors 2.750 2.800 Less: Bad debe provision (750) (500) Cash at bank 4.000 TOTAL ASSETS 38.000 14,300 Capital and Liabilities: Capital Account: Prisca Jean Osikani 21,000 8.000 7,000 Current Liabilities Trade creditors Bank overdraft 9,000 4,000 3.300 38.000 14,300 Additional Information: The terms of the amalgamation were as follows 1. Profits and Losses were to be shared in the ratio of Prisca:Joan:Osikani 2:1.1. 2. The values of goodwill for the two firms were agreed at Prisca & Joan GH 12,000 Osikani GH6.000No goodwill account was to be maintained in the books, but adjusting entries for transactions between the partners were to be made in the purtners capital accounts 3. The new firm was to take over all the assets and discharge all the liabilities of Prisca & Land and Buildings GH11,000 Furniture and Equipment GH6,250 Inventory GH18,500 Debtors GHc2.750 4. Osikani was to collect his own debts and pay his trade creditors. The new fimm was to take over his Furniture and Equipment as well as pay off his overdraft 5. The capital of the new firm was to be GH40,000, contributed in profit and less Sharing ratio. The balance due to be paid in, or withdrawn by cach partner was to be entered in a Current Account Required: a) Close the books of the two businesses, Prisca & Joan, and Osikani. b) Prepare the Statement of Financial Position of the New Fim as at 19 January, 2015

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