2. 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	65,900	Cash at Bank	1,200
Capitals		Sundry debtors	9,700
A	30,000	Stock	20,000
B	20,000	Plant and Machinery	35,000
		Building	50,000
	115,900		115,900

They agreed to admit C into Partnership on the following terms:

1. C was to be given one third share in profits and was to bring RO 15,000 as Capital
2. That the value of stock and plant were to be reduced by 10%
3. That the Building Account was to be appreciated by RO 9,500
4. 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