Deepika and Rajshree are partners in a firm sharing profits and losses in the ratio of 3 : 2. On 31st March, 2019 their Balance Sheet was:

Sundry Creditors16,000Cash in Hand1,200
Public Deposits61,000Cash at Bank2,800
Bank Overdraft6,000Stock32,000
Outstanding Liabilities2,000Prepaid Insurance1,000
Capital A/c :Sundry Debtors28,000
Deepika – 48,000Less: Provision for Doubtful Debts 800
Rajshree – 40,00088,000Plant and Machinery 48,000
 Land and Building50,000
 1,73,000 1,73,000

On 1st April, 2019 the partners admit Anshu as a partner on the following terms:
(a) The new profit-sharing ratio of Deepika, Rajshree and Anshu will be 5 : 3 : 2 respectively.
(b) Anshu shall bring in Rs. 32,000 as his capital.
(c) Anshu is unable to bring in any cash for his share of goodwill. Partners, therefore, decide to calculate the goodwill on the basis of Anshu’s share in the profits and the capital contribution made by her to the firm.
(d) Plant and Machinery is to be valued at Rs. 60,000, Stock at Rs. 40,000 and the Provision for Doubtful Debts is to be maintained at Rs. 4,000. Value of Land and Building has appreciated by 20%. Furniture has been depreciated by 10%.
(e) There is an additional liability of Rs. 8,000 being outstanding salary payable to employees of the firm. This liability is not included in the outstanding liabilities, stated in the above Balance Sheet. Partners decide to show this liability in the books of account of the reconstituted firm.
Prepare Revaluation Account, Partners’ Capital Accounts and Balance Sheet of Deepika, Rajshree and Anshu.


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