Marion and Nina are in partnership. Their summarised information at 31 October 2014 is:

Currently profits and losses are shared in the ratio 5:4. On 1 November they admit Oliver as a partner. Oliver contributes capital of $60 000 cash. At that date goodwill is valued at $90 000 and it is agreed that the new profit-sharing ratio will be 5:4:1.

Prepare:

a. A statement of financial position at 1 November 2014 after the admission of Oliver as a partner assuming goodwill is to remain in the books of account

b. A statement of financial position at 1 November 2014 after the admission of Oliver as a partner assuming goodwill is not to remain in the books of account.

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Non-curent assets 520 000 Current assets (including bank) 70 000 Non-current liability: Loan from Francis 30 000 Current liabilities 15 000 Capital accounts: Marion 300 000 Nina 240 000 Current accounts: Marion 4 000 (Dr) Nina 9 000 (Cr)