B and C were partners sharing profits in the ratio of 3 : 2. Their Balance Sheet as on 31-3-2011 was as follows:

 

Balance Sheet of B and C as on 31-3-2011
Liabilities		Amount Rs	Assets	Amount Rs
Capital:			Land and Building	80,000
B	60,000		Machinery	20,000
C	40,000	1,00,000	Furniture	10,000
			Debtors	25,000
Provision for bad debts		1,000	Cash	16,000
Creditors		60,000	Profit and Loss Account	10,000
		1,61,000		1,61,000

 

D was admitted to the partnership for 1/5^th share in the profits on the following terms:
(i) The new profit sharing ratio was decided as 2:2:1.
(ii) D will bring Rs 30,000 as his capital and Rs 15,000 for his share of goodwill.
(iii) Half of goodwill amount was withdrawn by the partner who sacrificed his share of profit in favour of D.
(iv) A provision of 5% for bad and doubtful debts was to be maintained.
(v) An item of Rs 500 included in Sundry Creditors was not likely to be paid.
(vi) An provision of Rs 800 was to be made for claims for damages against the firm.
After making the above adjustments the Capital Accounts of B and C were to be adjusted on the basis of D Capital. Actual cash was to be brought in or to be paid off as the case may be.
Prepare Revaluation Account, Partner’s Capital Accounts and Balance Sheet of the new firm.