QUESTION 1 (30 Marks) A, B and C are in partnership and the profit-sharing ratio is 5:2:3. The statement of financial position of the partnership 1 January 20.1 is as follows: ASSETS NS Property 190,000 Plant and equipment 85,000 Current assets 15,000 290,000 CAPITAL NS Capital A 40,000 Capital B 120,000 Capital C 80,000 Current account A 5,000 Current account B (10,000) Current account C 20,000 Replacement reserve 20,000 General reserve 15,000 290,000 On 1 January C decided to retire under the following conditions: 1. The property has to be re-valued up to N$200,000. 2. Goodwill is estimated at N$50,000, but should not be recorded in the books of the new partnership. 3. All reserves must be written back. 4. The new profit-sharing ratio for A and B is 2:2 5. C will receive N$10,000 cash and the rest should be converted to a loan. REQUIRED: 1. Shown the capital accounts in column format to display the above. (20 marks) 2. Show the statement of financial- position on 2 January 20.1 (10 marks)