Chapter $43-$ Revaluation of partnership assets

On $1$ January $20$X$3,$ they decided to admit Home as a partner on the condition that she contributed

$12,000$ as her capital but that the plant and machinery and stock should be revalued at $16,800$

and $6,100$ respectively, the other assets excepting goodwill, remaining at their book values. The

goodwill was agreed to be valueless.

You are required to show:

$($a$)$ The ledger entries dealing with the above in the following accounts:

$($i$)$ Goodwill account,

$($ii$)$ Revaluation accounts,

$($iii$)$ Capital accounts;

$($b$)$ The balance sheet of the partnership immediately after the admission of Home.