Partners A, B and C running a partnership firm in the name of M/s. ABC LLC with their capitals of OMR 60,000, OMR 40,000 and OMR 30,000 and an agreed sharing the profits and losses in the ratio of 3:2:1.respectively on 31.3.2020. The firms various assets and liabilities in the books of accounts are

Particular	OMR	Particular	OMR
Plant	60,000	Bank Overdraft	25,000
Buildings	100,000	Sundry Creditors	100,000
Furniture	25,000	Premises	40,000
Land	70,000	Machinery	40,000
6% Bonds	50,000	Stock	25,000
Bank Loan	40,000	Sundry Debtors	70,000
Profit & Loss A/c	25,000	Bills Receivable	25,000
General Reserve	50,000	Bills Payable	80,000

On 1.4.2020 they decided to admit D into the partnership for 1/5th of the future profits with the terms that D shall bring in a capital of OMR 50,000. The Goodwill of the firm being valued at OMR 40,000, Machinery, Land, Buildings and Plant are to be appreciated by 10%. Provision for Doubtful Debts @ 5% is to be created against Debtors. Stock, Furniture, Premises are to be depreciated by 5%. Discount on Creditors is to be made against Creditors @ 2.5%. Provision for outstanding liability is to be created at OMR 4,000 and Bank Loan is to be maintained in the books. Q1. Journalize the above transactions with narrations and prepare the Revaluation Account. Give your comment with reasons about the values which are debited and credited in the Revaluation Account.

Q2. Prepare Partners Capital Accounts and Balance Sheet of the reconstituted partnership firm. Give your views about the changes in the balance sheet after reconstitution.