A, B and C were partners in a firm sharing profit in the ratio of 3:2:1. On 31-3-2015 their Balance sheet was as follows:
On the above date D was admitted as a new partner and it was decided that
(i) The new profit sharing ratio between A, B, C and D will be 2:1:1:1.
(ii) Goodwill of the firm was valued at ₹ 90,000 and D brought his share of goodwill premium in cash.
(iii) The Market value of investments was ₹24,000.
(iv) Machinery will be reduced to ₹29,000.
(v) A Creditor of ₹ 3,000 was not likely to claim the amount and hence to be written off.
(vi) D will bring proportionate capital so as to give him 1/6th share in the profits of the firm. Prepare Revaluations Account, Partner’s Capital Accounts and Balance Sheet of the reconstitute firm