Ram and Shyam were partners in a firm sharing profits in the ratio of 2 : 3 respectively. They become old and no one was there to look after their business. Therefore, they decided to dissolve the business and donate the amount available to a NGO who is providing service for growing trees in urban areas to control pollution. On 31st January, 2014 their Balance Sheet was as follows : BALANCE SHEET as on 31st January, 2014 LiabilitiesAmountAssetsAmount(Rs)(Rs)Creditor65,000Land1,20,000 Bills Payable35,000Machinery65,000 Capitals:Goodwill10,000Ram75,000Stock25,000Shyam75,000Debtors20,000Cash10,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,50,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,50,000 Ram paid the creditors at a discount of 15% and Shyam paid bills payable in full. Assets realised as follows : Land at 20% less, Machinery Rs 35,000. Stock at 25% less and Debtors Rs 12,500. Expenses on realisation Rs 1,750 were paid by Shyam. Prepare Realisation Account, Partner's Capital Accounts and Bank Account. OR Alfa and Beta were partners in a firm. They were trading in artifical limbs. On 1st April, 2013 they admitted Gama, a good friend of Beta into the partnership. Gama lost his one hand in an accident and Alfa and Beta decided to give one artifical hand free of cost to Gama. The Balance Sheet of Alfa and Beta, as on 31st March, 2014 was as follows : BALANCE SHEET OF ALFA AND BETA As on 31st March, 2013 LiabilitiesAmountAssetsAmount(Rs)(Rs)Provision for Doubtful Debts40,000Cash1,00,000Workmen's Compensation Fund56,000Sundry Debtors8,00,000Outstanding Expenses30,000Stock2,00,000Creditors3,00,000Machinery3,86,000Capitals:Profit and Loss A/c40,000Alfa 5,00,000Beta 6,00,000––––––––––11,00,000–––––––––––15,26,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯15,26,000 Gama was admitted in the firm on the following terms : (i) Gama will bring in Rs 4,00,000 as his share of capital, but he was unable to bring any amount for goodwill. (ii) The new profit sharing ratio between Alfa, Beta and Gama will be 3 : 2 : 1. (iii) Claim on account of workmen's compensation was Rs 30,000. (iv) To write off bad debts amounting Rs 40,000 (v) Creditors were paid Rs 20,000 more. (vi) Outstanding expenses be brought down to Rs 12,000. (vii) Rs 20,000 be provided for an unforeseen liability. (viii) Goodwill of the firm was valued at Rs 1,80,000. Prepare Revaluation Account, Capital Accounts of Partners and the operating Balance Sheet of the new firm.