A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2 . Following is their Balance Sheet as at 31st March, 2018:
|
Liabilities
|
₹
|
Assets
|
₹
|
Capital A/cs:
|
|
Building
|
35,000
|
A
|
50,000
|
|
Machinery
|
25,000
|
B
|
30,000
|
80,000
|
Stock
|
15,000
|
Creditors
|
|
20,000
|
Debtors
|
15,000
|
|
|
|
Investments |
5,000 |
|
|
|
Bank |
5,000 |
|
|
|
|
|
|
|
1,00,000
|
|
1,00,000
|
|
|
|
|
|
C is admitted as a partner on 1st April, 2018 on the following terms:
(a) C is to pay ₹ 20,000 as capital for 1/4th share. He also pays ₹ 5,000 as premium for goodwill.
(b) Debtors amounted to ₹ 3,000 is to be written off as bad and a Provision of 10% is created against Doubtful Debts on the remaining amount.
(c) No entry has been passed in respect of a debt of ₹ 300 recovered by A from a customer , which was previously written off as bad in previous year . The amount is to be paid by A.
(d) Investments are taken over by B at their market value of ₹ 4,900 against cash payment .
You are required to prepare Revaluation Account, Partner's Capital Accounts and new Balance Sheet