A, B and C are partners sharing profits and losses in the ratio of 2 : 3 : 5. On 31st March, 2019, their Balance Sheet was: 

Bills Payable22,000Bills Receivable14,000
General Reserve14,000Stock44,000
Capital A/c :Debtors42,000
A – 36,000Machinery94,000
B – 44,000Goodwill20,000
C – 52,0001,32,000 
 2,32,000 2,32,000

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.


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