Following is the Balance sheet of Amar and Ahlam who share profits in the ratio 3:2

Liabilities Amount (OMR)

Assets Amount (OMR)

Sundry creditors 20,000

Cash at Bank 3,000

Stock 15,000

Partner's capital Sundry Debtors -12,000

Amar 30,000 Less provision - (0) 12,000

Ahlam 20,000 50,000 Plant & Machinery 30,000

Furniture 10,000

total 70,000 total 70,000

On that date Ameera is admitted into the partnership on the following terms:

Ameera is to bring in OMR 15,000 as capital and OMR 5,000 as premium for goodwill for 1/6th share

The value of stock is to be reduced by 10% while plant and machinery is appreciated by 10%

Furniture is revalued at OMR 9,000

A provision for doubtful debts is to be created on sundry debtors at 5%and OMR 200 is to be provided for an electricity bill

Investment worth OMR 1000 not mentioned in the Balance sheet is to be taken into account.

A creditor of OMR 100 is not likely to claim his money and is to be written off .

Prepare the Revaluation account & calculate the new profit sharing ratio and the sacrificing ratio