|Bills Payable||22,000||Bills Receivable||14,000|
|Capital A/c :||Debtors||42,000|
|A – 36,000||Machinery||94,000|
|B – 44,000||Goodwill||20,000|
|C – 52,000||1,32,000|
They admit D into partnership on the following terms:
(a) Machinery is to be depreciated by 15%.
(b) Stock is to be revalued at Rs. 48,000.
(c) It is found that the Creditors included a sum of Rs. 12,000 which was not to be paid.
(d) Outstanding Rent is Rs. 1,900.
(e) D is to bring in Rs. 6,000 as goodwill and sufficient capital for 2/5th share.
(f) The partners decided to use 10% of the profits every year in providing drinking water in schools, where required.
Prepare Revaluation Account, Partners’ Capital Accounts, Cash Account and Balance Sheet of the new firm.