Q2 The following was the Balance sheet of A, B and C sharing profits and losses in the proportion of 5:3:2 Liabilities Amount (RO) Assets Amount (RO) Creditors 40,000 Cash at Bank 30,000 Bills Payable 16,000 Stock 50,000 General Reserves 20,000 Debtors 60,000 Capital Accounts A 80,000 Furniture 16,000 B 70,000 Land and Buildings 120,000 C 50,000 276,000 276,000 They Admit D into Partnership giving him 1/5th share of profits on the following terms: D brings in his capital Provision is be made for outstanding expenses Goodwill already appears in the books Furniture is to be written down by Stock is to be depreciated by Land and Buildings is to be appreciated by 50,000 42,000 40,000 12.50% 7.50% 15.0% Write the Necessary Journal Entries. Prepare Revaluation Account, Capital Accounts and Balance sheet of the firm as newly constituted.