Exercise L.2 - Question 1 (a) David, Raymond and Lily are partners sharing profit and losses in the ratio of 3:2:1 respectively. The statement of financial position as at March 31, 2016 was as follows: Statement of financial position as at 31 March 2016 RM RM Non-current assets Plant & Machinery 37600 Building 24000 61600 Current assets Trade receivables 24800 (-) Provision for Doubtful Debt 2400 22400 Inventories 18400 Cash/Bank 32240 73040 134,640 Equities and Liabilities Capital: David Raymond Lela Non-current lability Loan - David Current liabilities Trade payables 51840 27360 14240 93440 10,000 31200 41200 134640 David retired on March 31, 2016 and Raymond and Lily continued in partnership sharing profits and losses in the ratio of 2: 1. David was repaid RM20000 on 1.4.2016 and it was agreed that the remaining balance due to him should be kept as his loan to the firm. For the purpose of David's retirement it was agreed that: 1. Building be revalued at RM48,000 and Plant and Machinery at RM31,600. 2. The provision for bad debts was to be increased by RM800. 3. A provision of RM1,000 included in creditor was no longer required. 4. RM2,400 was to be written off from the stock in respect of damaged items. 5. A provision of RM8,480 made in respect of outstanding legal charges. 6. The goodwill of the firm to be valued at RM28,800. Required: Prepare Revaluation Account, Capital A/C of partners and statement of financial position for the new firm as at 1st April 2016