10.000 Date Particulars 11.2010 10,000 11 2010 Cash And To Premium Me (Goodwill (Being amount of goodwill brought in by De Premium Ac (Goodwill To A's Capital A/C Being amount of goodwill credited to A's capital Alc) B's Capital Alc To A's Capital A/C Being compensation given to A by B 1.000 1.4 2010 (i) CALCULATION OF C'S CAPITAL: A's Capital after all adjustments = Rs.19.750 B's Capital after all adjustments = Rs.22.750 Total Capitals of eusting partners viz. A&B = Rs. 72,500 C's Capital should be of Rs. 72 500 = Rs 24.167 ILLUSTRATION 2 (Preparation of Balance Sheet of reconstituted firm). The Balance Sheer of Siddharth and Veenu sharing profits and losses in the ratio of 3:22 31.3.2010 is as under: R. Liabilities Creditors Siddharth's Capital Veenu's Capital 12.000 BALANCE SHEET as at 31.3.2010 Rs. Assets 15.000 Cash 46,000 Debtors 34.000 Less: Provision Stock Machinery Building 95.000 16.000 800 15200 2.800 35.00 30.000 95.000 On the same date, Beenu was admitted as partner on the following terms: (a) To write off bad debts amounting to Rs.1,000 (b) A Provision for Bad and Doubtful Debts be maintained at an existing rate. Stock is to be decreased to Rs.1,800 Building be increased to Rs.41.000 (e) Machinery was found overvalued by Rs.1.000 An amount of Rs 700 included in Sundry Creditors be written back as no longer payable. (3) Beenu shall introduce Rs.45,000 as his capital for his one-fifth share in profits (h) Goodwill is valued at Rs.1,00.000 and Beenu could not bring his share of goodwill in ca was decided not to raise goodwill account (1) Capital of old partners be adjusted on the basis of Beena's capital adjustment be made the cash Prepare Revaluation Account. Partners' Capital Accounts and the Balance sheet of