FAC1601Assignment 5 Semester 1 2023

QUESTION 1 Gill and Zaahir are in the business of supplying and installing solar panels in the form of a partnership trading as Solar Installations. Gill and Zaahir share profits and losses in the ratio1:2 respectively. On 31 May 2023 the following information was extracted from the accounting records of the partnership: Additional information - Gill and Zaahir agreed to admit Brian as a new partner from 1 June 2023. - Brain will contribute the following to acquire a third of the net asset share of the partnership: Cash….......................................................................R23 200 Solar Installation Equipment…........................R130 000 - Gill and Zaahir agreed to relinquish the 1/3 share equally. - All other assets were revalued before admitting Brian to the partnership. - A valuation profit was correctly calculated at R68 400 Which one of the following alternatives represents the new profit-sharing ratio after the admission of Brian into the new partnership? a. 1:3:2 b. 2:3:1 c. 2:1:2 d. 3:2:1 Assuming Gill and Zaahir agree to relinquish the 1/3 share in terms of their existing profit- sharing ratio, which one of the following alternatives represent the new profit-sharingratio after the admission of Brian into the new partnership? a. 2:4:3 b. 2:3:1 c. 3:2:1 d. 1:3:2 rd