Given below is the Balance Sheet of A and B who are carrying on partnership business on 31st March 2...........

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

Liabilities		Assets
Bills Payable	10,000	Cash in	10,000
		Hand
Creditors	58,000	Cash at	40,000
		Bank
Outstanding Expenses	2,000	Sundry	60,000
		Debtors
Capital A/cs:		Stock	40,000
A 1,80,000		Plant	1,00,000
B 1,50,000	3,30,000	Building	1,50,000
	4,00,000		4,00,000

C is admitted as a partner on 1st April, 2019 on the following terms:

C will bring 1,00,000 as his capital and 60,000 as his share of goodwill for 1/4th share in the profits.
Plant is to be appreciated to 1,20,000 and the value of building is to be appreciated by 10%. (c) Stock is found overvalued by 4,000.

A provision for doubtful debts is to be created at 5% of sundry debtors.
Creditors were unrecorded to the extent of 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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