k11 Liabilities Bills Payable Sundry Creditors Bank Loan Capitals ILLUSTRATION 54 (Preparation of Balance Sheet to reconstituted firm). A and B share profits and losses in the ratio 3 : 1. The Balance Sheet of A and B are as follows: BALANCE SHEET as at 31-3-2010 Rs. Assets Rs. 10,000 Cash 25.000 25.000 Debtors 60.000 50.000 Less: Provision 10.000 50.000 Stock 60,000 85,000 Office Furniture 20,000 B 50,000 1.35,000 Plant 16,000 Land 45.000 Goodwill 4,000 2.20,000 2.20,000 On the same date, they agree to admit C for rd share in profits on the following terms: (a) On the same date will bring in capital to the extent of of the total capital of new firm 6Land is to be appreciated to Rs.60,000 and Stock to be decreased by Rs.10.000. lo ) The Provision on Debtors is to be raised at Rs.15.000. (d) The Goodwill of the firm is valued at Rs.36,000 and C brings necessary share of goodwill in cash. Prepare the Revaluation Account, Partners' Capital Accounts and Balance Sheet after C's admission P and C