Illustration 50 061 P. Q and R were partners sharing Profits & Losses as 2:3:5. P retired on 31.3.13 and X joined as a new partner on the same date, the new profit sharing ratio between Q R and X being 2:3:1. The Balance Sheet of P, Q & Ron 31.3.2013 was as follows: Sundry Creditors 50,000 Cash in hand 2,000 Loan from X 50,000 Cash at Bank 93,000 General Reserve 40,000 Sundry Debtors 30,000 Capitals : Stock 20,000 10,000 Machinery 30,000 15,000 Buildings 10,000 R 20.000 45,000 1,85,000 1,85,000 X was admitted on the following terms: (1) Machinery was to be depreciated by 3,000 (2) Buildings were revalued at 30,000 (3) Stock was to be written off by 5,000 (4) Provision of 5% was made against doubtful debts (5) General Reserve would be apportioned among the partners (6) The firm's Goodwill was to be valued at two years purchase of the average profits of the last three years (7) The amount due to P was retained in the business as a loan but X's Capital contribution should be 1/5th of the combined adjusted capitals of Q and R. His capital would be transferred from his Loan Account. (8) the Goodwill would be wiped off from the books after X's admission. (9) Partners decided not to alter the book values of assets & liabilities after admission. The profits/losses during the last 3 years had been 31.3.11 20,000 (Profit) 31.3.12 + 15,000 (loss) and 31.3.13 40,000 (Profit). Show the necessary Accounts and Balance Sheet of the firm