-vill and Capital) EU discounted bill) = 2,02,992. Assets Liabilities Creditors General Reserve Capital A/cs: 37,500 6,000 28,500 15,500 Cash at Bank Bills Receivable Debtors Stock Furniture Land and Building 44,000 22,500 3,000 16,000 20,000 1,000 25,000 87,500 87,500 They admit C into partnership on 1st April, 2020 on the following terms: (1) C pays 14,000 as his capital for 1/5th share in the future profits. (ii) Goodwill is valued at $ 20,000. C is unable to bring cash for his share of goodwill. (iii) Stock and Furniture be reduced by 10% and 5% Provision for Doubtful Debts be created on Debtors. (iv) Land and Building be appreciated by 20%. (v) Capital Accounts of the partners be readjusted on the basis of new partner's capital in their profit-sharing arrangement and any excess or deficiency is to be transferred to their Current Accounts. Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm. Illustration 58 (Adjustment regarding Capital when the Current Accounts are Opened). Following is the Balance Sheet of A and B, who had been sharing profits in proportion of 3/4th and 1/4th as at 31st March, 2020