Divya, Yasmin and Fatima are partners in a firm, sharing profits and losses in 11 : 7 : 2 respectively. The Balance Sheet of the firm on 31st March, 2018 was as follows:

BALANCE SHEET as at 31st March, 2018

Sundry Creditors70,000Factory Building7,35,000
Public Deposits1,19,000Plant and Machinery1,80,000
Reserve Fund90,000Furniture2,60,000
Outstanding Expenses10,000Stock1,45,000
Capital A/c :Debtors – 1,50,000
Divya – 5,10,000Less: Provision – (30,000)1,20,000
Yasmin – 3,00,000Cash at Bank1,59,000
Fatima – 5,00,00013,10,000 
 15,99,000 15,99,000

On 1st April, 2018, Aditya is admitted as a partner for one-fifth share in the profits with a capital of Rs. 4,50,000 and necessary amount for his share of goodwill on the following terms:
(a) Furniture of Rs. 2,40,000 were to be taken over Divya, Yasmin and Fatima equally.
(b) A creditor of Rs. 7,000 not recorded in books to be taken into account.
(c) Goodwill of the firm is to be valued at 2.5 years’ purchase of average profits of last two years. The profit of the last three years were:
2015-16 − Rs. 6,00,000; 2016-17 − Rs. 2,00,000; 2017-18 − Rs. 6,00,000.
(d) At time of Aditya’s admission. Yasmin also brought in Rs. 50,000 as fresh capital.
(e) Plant and Machinery is re-valued to Rs. 2,00,000 and expenses outstanding were brought down to Rs. 9,000.
Prepare Revaluation Account, Partners’ Capital Account and the Balance Sheet of the reconstituted firm.


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