Q78 A and B are partners in a firm sharing profits and losses in the ratio of 3 2 Following is their......

Q78.A and B are partners in a firm sharing profits and losses in the ratio of 3 : 2. Following is their Balance Sheet as at 31st March, 2019:

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

1. C is to pay 20,000 as capital for 1/4th share. He also pays 5,000 as premium for goodwill.
2. Debtors amounted to 3,000 is to be written off as bad and a Provision of 10% is created against Doubtful Debts on the remaining amount.
3. No entry has been passed in respect of a debt of 300 recovered by A from a customer, which was previously written off as bad in previous year. The amount is to be paid by A.
4. Investments are taken over by B at their market value of 4,900 against cash payment.

You are required to prepare Revaluation Account, Partner's Capital Accounts and new Balance Sheet

By: Aman