A, B and C were partners sharing profits and losses in the ratio of 5 : 3 : 2. Their Balance Sheet as at 1st April, 2011 was as follows : Capital and LiabilitiesRsAssetsRsSundry Creditors10,000Cash2,000Employee's Provident Fund5,000Sundry Debtors8,000Reserve Fund6,000Stock40,000Workmen's CompensationFurniture13,000Reserve2,000Patents4,000Capitals :Building60,000A50,000Goodwill6,000B35,000C25,000––––––––1,10,000––––––––––1,33,000––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,33,000–––––––––– C retires on above date and the partners agreed that : (1) Goodwill is to be valued at two year's purchase of the average profits of last four years. Profits for the years ending 31st March were : 2008 : Rs 14,400, 2009 : Rs 20,000, 2010 : Rs 10,000 (Loss), 2011 : Rs 15,600. (2) 5% provision for doubtful debts to be made on debtors. (3) Stock be appreciated by 10%. (4) Patents are valueless. (5) Buildings be appreciated by 20%. (6) Sundry Creditors to be paid Rs 2,000 more than the book value. Pass Journal entries and prepare Revaluation Account, Capital Accounts and the Balance Sheet of the new firm.