A, B and C are partners in a firm sharing profits and losses in the ratio of 3:2:1. Their Balance Sheet as at 31st March, 2018 is as follows: LiabilitiesAmount AssetsAmount(Rs) (Rs) Sundry Creditors36,000Cash14,000Bank Overdraft20,000Sundry Debtors 50,000Reserve15,000(-) Provision 2,500––––––47,500Capital A/c:Stock60,000 A60,000Patents6,000 B60,000Fixed Assets98,500 C50,000Goodwill15,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,41,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,41,000 On 1st April, 2018 they admitted D into the firm with 1/4th share in profits, which he gets 1/8th from A and 1/8th from B. Other terms of agreement are as under: (i) D will introduce Rs 60,000 as his capital and pay Rs 18,000 as his share of goodwill. (ii) 10% of reserve is to remain as a provision against bad and doubtful debts. (iii) A liability to the extent of Rs 1,000 be created in respect of a claim for damages against the firm. (iv) An item of Rs 4,000 included in sundry creditors in snot likely to be claimed. (v) Stock is to be reduced by 30% and patents to be written off in full. After making the above adjustments the capital accounts of the old partners be adjusted on the basis of D's capital to his share in the business i.e., actual cash to be paid off or brought in by, the old partners as the case may be. Prepare Partner's Capital Accounts and the Balance Sheet of the new firm. OR The Balance sheet of A,B and C who were sharing profits in the ratio of 5:3:2 is given below as at March 31,2013. BALANCE SHEET OF A,B AND C as at March 31, 2003 LiabilitiesAmount AssetsAmount(Rs) (Rs) Capital A/cPlant and Machinery4,65,000 A7,20,000Building3,80,000 B4,15,000 Stock1,85,000 C3,45,000Sundry Debtors1,72,000Outstanding Expenses16,000Land4,00,000Sundry Creditors1,24,000Cash in Hand1,21,000Reserve Fund1,80,000Furniture and Fitting77,00018,00,00018,00,000 B dies on 1st June and the following adjustments are agreed upon: (i) Stock was valued at Rs 1,72,000. (ii) Furniture and fitting were under valued by Rs 13,000. (iii) An amount of Rs 10,000 is to be made as a provision for debts. (iv) Goodwill of the firm was valued at Rs 1,80,000 but it was decided not to show goodwill in the books of accounts. (v) His executor was paid Rs 40,000 immediately and the balance will be transferred to loan account. (vi) His share of profit till the date of death will be calculated on the basis of profits of last 4 years which were Rs 36,000. (vii) A and C were to share future profits in the ratio of 3:2. Prepare Revaluation Acoount and Capital Account.