A, B and C are partners in a firm sharing profits and losses in the ratio of 3 : 2 : 1. Their Balance Sheet as at 31st March, 2019 is:

( Rs.)
( Rs.)
Creditors30,000Cash in Hand18,000
Bills Payable16,000Debtors – 25,000
General Reserve12,000Less: Provision for Doubtful Debts – (3,000)22,000
Capital A/c :Stock 18,000
 A 40,000Furniture30,000
 B – 40,000Machinery70,000
 C 30,0001,10,000Goodwill10,000
 1,68,000 1,68,000

B retires on 1st April, 2019 on the following terms:
(a) Provision for Doubtful Debts be raised by Rs. 1,000.
(b) Stock to be reduced by 10% and Furniture by 5%.
(c) There is an outstanding claim of damages of Rs. 1,100 and it is to be provided for.
(d) Creditors will be written back by Rs. 6,000.
(e) Goodwill of the firm is valued at Rs. 22,000.
(f) B is paid in full with the cash brought in by A and C in such a manner that their capitals are in proportion to their profit-sharing ratio and Cash in Hand remains at Rs. 10,000.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of A and C.


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