Two partnership firms, carrying on business under the style of Black & Co. and White & Co. respectively, decided to amalgamate into Grey & Co. with effect from 1st January 2018. The respective Balance Sheets are: Balance Sheet of Black & Co. as on 31st December, 2017

Liabilities	Tk.	Assets	Tk.
Mr Bs Capital Accounts	25,000	Plant and Machinery	15,000
Sundry Creditors	15,000	Stock-in-trade	18,000
Bank Overdraft	20,000	Sundry Debtors	20,000
Mr As Capital Account	17,000
60,000	60,000

A and B share profits and losses in the proportion of 1: 2. Balance Sheet of White & Co. as on 31st December, 2017

Liabilities	Tk.	Assets	Tk.
Mr Xs Capital Account	12,000	Investment	7,000
Mr Ys Capital Account	5,000	Stock-in-trade	7,000
Sundry Creditors	10,500	Sundry Debtors	10,000
Cash in hand	3,500
27,500	27,500

X and Y share profit and losses equally. The following further information is given : 1. All fixed assets are to be devalued by 25%. 2. All stock in trade is to be appreciated by 50%. 3. Black and Company owes Tk. 5,000 to White & Co. as on 31st December 2017. This debit is settled at Tk. 2,000 4. Investment is to be ignored for the purpose of amalgamation, being valueless. 5. The fixed capital accounts in the new firm are to be :Mr A Tk. 2,000; Mr B Tk. 3,000 Mr X Tk. 1,000 Mr Y Tk. 4,000 6. Mr B takes over bank overdraft of Black & Co. and gifts to Mr A the amount of money to be brought in by Mr A to make up his capital contribution. 7. Mr X is paid off in cash from White & Co. and Mr Y brings in sufficient cash to make up his required capital contribution. Requirements: Explain and execute the process of recordings of the above entries.