The Following was the Balance sheet of A and B who were sharing profits two thirds and one third on 1st December 2020.

Liabilities	Amount (RO)	Assets	Amount (RO)
Creditors Capitals A B	65,900 30,000 20,000	Cash at Bank Sundry debtors Stock Plant and Machinery Building	1,200 9,700 20,000 35,000 50,000
115,900	115,900

They agreed to admit C into Partnership on the following terms: a. C was to be given one third share in profits and was to bring RO 15,000 as Capital b. That the value of stock and plant were to be reduced by 10% c. That the Building Account was to be appreciated by RO 9,500 d. Investment worth RO 400 (not mentioned in the balance sheet) were taken into account Record Necessary Journal Entries and Prepare Revaluation accounts, partners capital accounts and Balance sheet of the new firm.