A, B and C were partners sharing profits in the ratio of 3 : 2 : 1. On 1st January, 2018, B retired, on that date Balance Sheet was as follows :

The terms were :

(i) Goodwill was to be valued to ₹12,000 but no Goodwill Account was to be raised.

(ii) New ratio between A and C will be 3 : 2.

(iii) Expenses owing are to be brought down to ₹1,500; Plant is to be valued at 10% less and patents at ₹4,000.

(iv) The total capital of new firm will be fixed at ₹25,000 to be contributed by partners in profit sharing ratio. Prepare Ledger Accounts to record the above and prepare Balance Sheet after B’s retirement.

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General Reserve Expenses Owing Bills Payable Creditors Capital Accounts: ABC Liabilities ₹ 6,000 Plant 2,000 Patents 5,000 Debtors 10,000 Stock Cash 12,000 10,000 9,000 54,000 Assets ₹ 30,000 3,000 9,500 11,000 500 54,000