Problem 4: Given below is the Balance sheet of Ahmed and Biswas who are carrying on partnership business sharing profits and losses in the ratio of 2:1.

Liabilities	Amount (OMR)	Assets	Amount (OMR)
Sundry creditors Bills payable Partner's capital Ahmed 180,000 Biswas 150,000 Outstanding expenses Total	58,000 10,000 330,000 2,000 400,000	Cash at Bank Stock Sundry Debtors -60,000 Less provision - (0) Plant & Machinery Building Total	50,000 40,000 60,000 100,000 150,000 400,000

Rehan is admitted as a partner and the following adjustments need to be made:

Rehan is to bring in OMR 100,000 as her capital and OMR 60,000 as her share of goodwill for 1/4th share in profits

Plant is to be appreciated to OMR 120,000 and the value of buildings is to be appreciated by 10%

Stock is found overvalued by OMR 4,000

A Provision for doubtful debts is to be created at 5% of debtors

Creditors were unrecorded to the extent of OMR 1,000

Prepare all the necessary accounts & calculate the new profit sharing ratio and the sacrificing ratio.