Given below is the Balance Sheet of A and B, who are carrying on partnership business on 31st March, 2019. A and B share profits and losses in the ratio of 2 : 1. BALANCE SHEET OF A AND B as at 31st March, 2019

Bills Payable10,000Cash in Hand10,000
Creditors58,000Cash at Bank40,000
Outstanding Expenses2,000Sundry Debtors60,000
Capital A/c :Stock40,000
A – 1,80,000Plant1,00,000
B – 1,50,0003,30,000Building1,50,000
 4,00,000 4,00,000

C is admitted as a partner on 1st April, 2019 on the following terms:
(a) C will bring Rs. 1,00,000 as his capital and Rs. 60,000 as his share of goodwill for 1/4th share in the profits.
(b) Plant is to be appreciated to Rs. 1,20,000 and the value of building is to be appreciated by 10%.
(c) Stock is found overvalued by Rs. 4,000.
(d) A provision for doubtful debts is to be created at 5% of sundry debtors.
(e) Creditors were unrecorded to the extent of Rs. 1,000.
Pass the necessary Journal entries, prepare the Revaluation Account and Partners’ Capital Accounts, and show the Balance Sheet after the admission of C.


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