3) The following is the Balance Sheet of Amutha and Rama sharing profits 3:2. as on 31.3.2015 Balance Sheet Liabilities Sundry creditors Bills Payable Capital Account: Amutha 40.000 Rama 30.000 Amount 80 000 20.000 Assets Bank Sundry debtors Stock Machinery Land & Buildings Amount 10,000 30,000 20,000 40.000 70.000 70.000 170,000 170,000 On 1.4.2015 They decided to admit Latha into the partner for sin of the future profits on the following terms (a) latha shall bring in a capital of R.O 30,000 and R.O 4,000 as her share of goodwil, (b) Goodwill of the firm being valued at R.O 20.000 (c) Land and buildings be appreciated by 10% d) Stock is depreciated by R.O 3,000 and provision for outstanding liability is created at RO 2.000 Required: Prepare the Revoluation account Copital accounts. Bank account and the Balance Sheet of the reconstituted partnership (Ans.: Revaluation Profit: R.O 2,000; B/s: R.02.24,000)