3.12 Kit Rs. Liabilities Creditors ILLUSTRATION 3 (Preparation of Balance Sheet of reconstituted firm). The Balance Sheet of Pankhu and Tutu who share profits and losses in the ratio of 3:1, as at 31" March 2010 was as follows: BALANCE SHEET as at 31.3.2010 Assets Rs. 1,000 Cash 2,500 Workmen's Compensation Reserve 4.000 Debtors 6,000 Investment Fluctuation Reserve 1,000 Less : Provision 500 5,500 General Reserve 2,000 Stock 2,000 Pankhu's Capital 6,000 Investments 6,000 Tutu's Capital 4,000 Goodwill 2,000 18,000 18.000 On 1 4.2010. Kaku was admitted for th th share on the following terms:- (a) The market value of Investments is to be taken as Rs 4.200; (b) Unaccounted Accrued Income of Rs 200 be accounted for (c) A claim on account of Workmen's Compensation for Rs. 1.000 be provided for: (d) Provision for Bad Debts was found to be in excess by Rs.200; (e) Kaku shall bring Rs.2.000 as his share for goodwill and Rs. 5,000 for capital. That total capital of all partners of the new firm is agreed upon as Rs. 19,600 and the same were to be in profit sharing ratio, adjustments to be made through partners' current Accounts. Prepare Revaluation Account, Partners' Capital/Current Accounts and Balance Sheet after Kaku's admission