Doubtful Debt created) Dr. 2,520 Revaluation A/c To Azad is Capital Alc To Babli's Capital A/C (Profit on revaluation transferred to Azad and Babli's Capital 1.680 840 Account) Dr. 3,680 Azad's Capital A/C To Azad's Current A/c Excess of Capital transferred to current account) 3,6801 Q32: Ashish and Dutta were partners in a firm sharing profits in 3:2 ratio. On Jan. 01, 2007 they admitted Vimal for 1/5 share in the profits. The Balance Sheet of Ashish and Dutta as on Jan. 01, 2007 was as follows: n49 Balance Sheet of A and B as on 1.1.2007 Amount Amount Liabilites Creditors Bills Payable Ashish Capital Dutta's Capital Rs 35,000 45.000 Rs Assets 15,000 Land & Building 10,000 Plant 80,000 Debtors 35,000 Less: Provision Stock Cash 1,40.000 22,000 2.000 20,000 35,000 5.000 1.40,000 It was agreed that: i) The value of Land and Building be increased by R$ 15,000. ii) The value of plant be increased by 10,000. iii) Goodwill of the firm be valued at Rs 20,000. iv) Vimal to bring in capital to the extent of 1/5th of the total capital of the new firm. Record the necessary journal entries and prepare the Balance Sheet of the firm after Vimal's admission