P, Q and R are in partnership sharing profits and losses in the ratio of 2 : 2 : 1. P retired on 31.12.2017 and on that date, the Balance Sheet of the firm was as under :

On P’s retirement, Goodwill is valued at ₹10,000 and the assets are revalued as follows : Land and Building ₹12,000; Plant and machinery ₹5,000;

Furniture ₹1,500; Debtors ₹12,500. While apportioning profits for the year 2017, an amount of ₹3,000 was given to P in excess, Q and R provide cash in their profit sharing ratio in order to pay-off P. You are required to pass Journal Entries, prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet after P’s retirement.

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Capital Accounts: P Q R Creditors Liabilities ₹ Land and Building 16,000 Plant and Machinery 8,000 Furniture 8,000 Stock 12,000 Debtors Cash 44,000 Assets ₹ 10,000 6,000 2,000 7,000 15,000 4,000 44,000