At 31 December 2013, the statement of financial position of A, B and C, who are equal partners, was as follows

A retired at that date. In order to determine the amount due to him the following revaluations were made: Freehold premises £18,000; machinery and tools £16,000; investments £5,100. The value of the goodwill was agreed at £8,000. It was arranged that A should take over the investments in part payment of the amount due to him, the balance to be settled in cash. B and C would increase their capitals by paying in £10,000 and £6,000 respectively. These changes were all carried out. Required:

(a) Prepare the revaluation account, bank account and capital accounts.

(b) Prepare the opening statement of financial position of B and C.

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Non-current assets Freehold premises Machinery and tools Investment, at cost Current assets Inventory Accounts receivable Bank Total assets Current liabilities Accounts payable Net assets Capital accounts A B Total capital 4 16,000 12,800 12,100 3 16,000 15,100 4,000 35,100 40,900 76,000 (14,000) 62,000 20,000 17,000 25,000 62,000