Please answer all the questions

Question 1 (36 Marks) Melinda and Melissa are partners in a clothing design shop trading as M&M Boutique. The share profits and losses in the ration 2:1. On 30 June 2017, the statement of financial pasition was as follows: M&M Boutique Statement of financial position as at 30 June 2017 N$ NS Current Assets & Building 300,000.00 60,000.00 90,000.00 30,000.00 uniture t Assets 144,000.00 186,000.00 27,000.00 Trade Recevable 357,000.00 otal Assets and Liabilities quity Melinda Melissa 450,000.00 Total Equity 675,000.00 current liabilities 20,000.00 rade payable 42,000.00 42,000.00 837,000.00 otal current liabilities Total liabilities otal and liabilities Page 8 of 18 On 1 July 2017 the decided to admit Melintha to the partnership on the follawing conditions a) Assets should be re-valued as follows: i. Land & buildings ii. Vehicles iii. Furniture iv. Goodwil v. Inventory vi. Trade receivable NS 360, 000.00 NS 54, 000.00 N$ 16, 000.00 N$ 120, 000.00 N$ 132, 000.00 N$ 180, 000.00 b) Melintha will obtain 1/S share of partnership and it was agreed that she would pay a premium for good will for her share. Melinda and Melissa will share the remaining profits in the ratio 3:2. Melinda and Melissa must make cash payments/withdrawals in arder to get their capital balances in line with their profit-sharing ratio. c) d) Goodwill should not be disclosed in the statement of financial position after adrmitting Melintha. You are required to: 1. Calculate the new profit sharing ratio after admission of Melintha on 01 July 2017-(4 marks) 2. Provide the journal entries of the transactions above.11 Marks) 3. Prepare the capital accounts of the partners in calumnar format (9 marks) 4. Prepare a statement of financial pasition of a partnership on 30 June 2017.(8 Marks) 5. Discuss in short four reasons far the formatian of partnerships (4 Marks)