the above date, Saloni was admitted in the partnership firm. Raman

surrendered

th

5

2

of his share and Rohit surrendered

th

5

1

of his share in

favour of Saloni. It was agreed that :

(i)

Plant and machinery will be reduced by

<

35,000 and furniture

and fixtures will be reduced to

<

58,500.

(ii)

Provision for bad and doubtful debts will be increased by

<

3,000.

(iii)

A claim for

<

16,000 for workmen's compensation was admitted

.

(iv)

A liability of

<

2,500 included in creditors is not likely to arise.

(v)

Saloni will bring

<

42,000 as her share of goodwill premium and

proportionate capital.

Prepare Revaluation Account, Partners

'

Capital Accounts and Balance

Sheet of the reconstituted firm.