A, B and C were partners in a firm sharing profits in the ratio of 3 : 2 : 1. Their Balance Sheet as on 31st March, 2015 was as follows:

LiabilitiesAmount (Rs.)AssetsAmount  (Rs.)
Bills Payable20,000Building50,000
General Reserve30,000Plant1,00,000
Capital A/cs: Stock40,000
 A – 1,00,000 Debtors30,000
 B – 50,000 Bank5,000
 C – 25,0001,75,000 
 2,75,000 2,75,000

 From 1st April, 2015, A, B and C decided to share profits equally. For this it was agreed that:
(i) Goodwill of the firm will be valued at Rs. 1,50,000.
(ii) Land will be revalued at Rs. 80,000 and building be depreciated by 6%.
(iii) Creditors of Rs. 6,000 were not likely to be claimed and hence should be written off.
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of the reconstituted firm.


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