Indian Accounting.

10. P and Q are partners in a firm sharing profits and losses in the ratio of 4: 1. Their Balance Sheet as on 31.03.2020 is as under: Liabilities Assets Capital Accounts: P Q Reserves Creditors Bills Payable 60,000 1,40,000 50,000 60,000 20,000 Furniture Stock Bills Receivable Debtors Cash at Bank 50,000 1,00,000 24,000 80,000 76,000 3,30,000 3,30,000 They agreed to take R as a partner with effect from 01.04.2020 on the following terms : (a) P, Q and R will share profits and losses in the ratio of 5: 3:2 (b) R will bring * 30,000 as premium for goodwill and * 70,000 as capital. (c) The assets will be revalued as follows: Furniture * 70,000, Stock 97,000 and Debtors 77,000. (d) A creditor has agreed to forgo his claim by 8,000. (e) After making the above adjustments, the capital accounts of P and Q should be adjusted on the basis of R's capital by bringing in cash or withdrawing cash as the case may be. Show Revaluation Account, Partners' Capital Account and prepare the Balance Sheet of the new firm on 01.04.2020. 6+8+6