: A and B are parents in a firm sharing profits and losses in the ratio of 3:2. Their balance sheet was as follows on 1st January, 2015 : Liabilities(#.)Assets (#.)
Sundry Creditors
Capital
A 30,000
B 25,000
General reserve15,000

55,000
10,000Plant
Patents
Stock
Debtors
Bank30,000
10,000
20,000
18,000
2,000
80,00080,000
C is admitted as a partner on the above date on the following terms :
(i) He will pay # 10,000 as goodwill for one-fourth share in the profit of the firm.
(ii) The assets are to be valued as under :
Plant at #. 32,000; Stock at #. 18,000; Debtors at book figure a provision of 5 percent for bad debts.
(iii) It was found that the creditors included a sum of # 1,400 which was not be paid. But it was also, found that there was a liability for compensation to workers amount in to Rs. 2,000.
(iv) C was to introduce #20,000 as capital and the capitals of other partners were to be adjusted in the new profit sharing ratio for this purpose, current accounts were to be opened.
Prepare Revaluation Account, Capital Account and Balance Sheet after C’s admission.