A, B and C are partners sharing profits and losses 4/7ths, 2/7ths, 1/7ths respectively. Their Balance Sheet on 31st December 2017 was as folloOn the same date A retired from the business and the following adjustments were made :

(i) Firm’s goodwill was valued at ₹36,000.

(ii) Assets and liabilities are to be revalued as : Stock ₹18,000; Land and Building ₹33,900; Debtors ₹15,750; Machinery ₹37,500; Creditors ₹21,000.

(iii) B to bring in ₹30,000 and C ₹7,500 as additional capital.

(iv) A was to be paid  ₹24,300 in cash and the balance of his Capital Account to be transferred to his Loan Account. Prepare Revaluation Account, Partners’ Capital Accounts, Cash Account and the Balance Sheet of the firm after A’s retirement.

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Capital A/cs: A B C Bills Payable General Reserve Creditors Liabilities ₹ Goodwill 45,000 Stock 30,000 Debtors 25,000 Land and Building 3,000 Machinery 10,500 Motor Van 22,500 Cash 1,36,000 Assets ₹ 15,000 22,500 16,500 30,000 39,750 7,750 4,500 1,36,000