Ram, Mohan, Sohan and Hari were partners in a firm sharing profits in the ratio of 4 : 3 : 2 : 1. On 1st April, 2016, their Balance Sheet was as follows:

BALANCE SHEET OF RAM, MOHAN, SOHAN AND HARI

as on 1st April, 2016

From the above date, the partners decided to share the future profits in the ratio of 1 : 2 : 3 : 4. For this purpose the goodwill of the firm was valued at 1,80,000. The partners also agreed for the following:a

The Claim for workmen compensation has been estimated at 1,50,000.

b

Adjust the capitals of the partners according to the new profit-sharing ratio by opening Partners' Current Accounts. Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the reconstituted firm.