The above partners have always shared profits and losses in the ratio: Pitt 4: Lamb 2: Soul 1. From 1 January the assets were to be revalued as the profit sharing ratios are to be altered soon.

The following assets are to be revalued to the figures shown: Buildings £106,000; Motor vehicles £13,000; Stock £4,894; Office fittings £1,450.

Required:

(a) You are required to show all the ledger accounts necessary to record the revaluation.

(b) Draw up a balance sheet as at 1 January 20X6.

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Buildings (at cost) Motor vehicles (at cost less depreciation) Office fittings (at cost less depreciation) Stock Debtors Bank Pitt, Lamb and Soul Balance Sheet as at 31 December 20X5 Capitals: Pitt Lamb Soul 6,100 7,400 800 £ 80,000 16,500 1,800 98,300 14,300 112,600 £ 60,000 30,000 22,600 112,600