Lisa, Monika and Nisha were partners in a firm sharing profitsand losses in the ratio of 2 : 2 : 1. On 31stMarch,2019, their Balance Sheet was as follows :

On 31stMarch,2019, Monika retired from the firm and the remaining partners decided to carry on the business.It was agreed that :

(i)Land and building be appreciated by Rs.2,40,000 and machinery be depreciated by 10%.

(ii)50% of the stock was taken over by the retiring partner at book value.

(iii)Provision for doubtful debts was to be made at 5% on debtors.

(iv)Goodwill of the firm be valued at Rs.3,00,000 and Monika’sshare of goodwill be adjusted in the accounts of Lisa and Nisha.

(v)The total capital of the new firm be fixed at Rs.27,00,000 which will be in theproportion of the new profit sharing ratio of Lisa and Nisha.

For this purpose, current accounts of the partnerswere to be opened.Prepare RevaluationAccount, Partners’Capital Accountsand the Balance Sheet of the reconstituted firm on Monika’s retirement.