Following in Balance Sheet of A and B who share profits in the ratio of 3:2.
On that date C is admitted into the partnership on the following terms: 1. C is to bring in Rs. 15,000 as capital and Rs. 5,000 as premium for goodwill for `(1)/(6)` share.
2. The value of stock is reduced by 10% while plant and machinery is appreciated by 10%.
3. Furniture is revalued at Rs. 9,000.
4. A provision for doubtful debts is to be created on sundry debtors at 5% and Rs. 200 is to be provided for an electricity bill.
5. Investment worth Rs. 1,000 (not mentioned in the balance sheet) is to be taken into account.
6. A creditor of Rs. 100 is not likely to claim his money and is to be written off. Record journal entries and prepare revaluation account and capital account of partners.
