A, B and C were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1 respectively. The Balance Sheet of the firm as on 31.12.2017 was as follows:

On 31.12.2017, B retired. The terms of retirement provided the following :

(a) The goodwill of the firm was to be valued at ₹20,000.

(b) Furniture, plant and machinery were to be depreciated by 10% and 5% respectively.

(c) Stock and building were to be appreciated by 20% and 10% respectively.

(d) Provision for doubtful debts was to be increased to ₹1,500.

(e) The reserve was to be transferred to the Capital Accounts of the partners.

(f) The amount due to B was to be transferred to a separate Loan Account earning interest @ 10% p.a. Show the Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the firm after B’s retirement.

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Sundry Creditors Bills Payable Capital Accounts: Reserve A B C Liabilities 40,000 40,000 30,000 ₹ 25,000 Cash 12,000 Sundry Debtors Less: Provision for Bad Debts Closing Stock Furniture Assets 1,10,000 Plant and Machinery 15,000 Buildings 1,62,000 20,000 1,000 ₹ 3,000 19,000 30,000 10,000 40,000 60,000 1,62,000