D, H, F were equal partners of the firm ‘Enterprise’ and the following Balance Sheet as at 1.7.2018 was produced by them:On 1.7.2018 they agreed to take R as an equal partner on the following terms:

(a) R should bring ₹1,60,000 as his capital and goodwill, his share of goodwill was evaluated at ₹60,000;

(b) Provision for loss on stock and provision for bad debts to be made at 10% and 5% respectively

(c) The value of building was to be taken at  2,70,000

(d) The total capital of the new firm was fixed at ₹4,00,000 and the Partners Accounts be in their profit sharing ratio. Any excess is to be transferred to Current Account or deficit to be introduced in cash.

You are required to prepare the Profit and Loss Adjustment Account, Capital Accounts of the partners and the Balance Sheet.

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Fixed Assets Land Building Furniture Working Capital Stock Debtors Cash Less: Creditors Bills payable Total assets Represented by: D Capital H Capital F Capital ₹ 1,14,000 1,08,000 ₹ 1,19,000 1,95,000 24,000 3,38,000 6,000 2,28,000 33,000 60,000 93,000 ₹ 1,35,000 4,73,000 2,17,000 1,66,000 90,000 4,73,000