Liam and Lorna have been in partnership for many years, sharing profits in the ratio 3:2. On 31 October 2000 they agree to admit Len as a partner. Len will introduce capital of £15,000 and the new partnership of Liam, Lorna and Len will share profits in the ratio 4:3:1. The partnership balance sheet on 31 October 2000 is as follows:

It is agreed that the market values of the partnership's assets on 31 October 2000 are Goodwill £40,000, Land & buildings £95,000, Plant & equipment £20,000, Motor vehicles £15,000, Stock £11,500 and Debtors £16,430.
The partners wish to continue the practice of not showing goodwill in the balance sheet. Land & buildings are to remain in the balance sheet at historic cost, but all of the other assets are to be shown at their revalued amounts.
Required:
Make the necessary entries to record Len's admission to the partnership and prepare a revised balance sheet for the partnership.

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Fixed assets Land and buildings 50,000 Plant and equipment Motor vehicles 18,300 19,750 88,050 Current assets Stock of goods for resale 12,450 Trade debtors 17,210 Bank balance 680 30,340 Current liabilities Trade creditors 22,220 8,120 96,170 Capital accounts Liam 60,000 Loma 30,000 90,000 Current accounts Liam 5,100 Loma 1,070 6,170 96,170