4

The following was the Balance sheet of A, B and C sharing profits and losses in the ro ortion 0 Liabilities Cre di tors 100,000 Bills Payable 125,000 General Reserves 150,000 Ca ital Accounts 200,000 175 ooo 300 ooo 125,000 690,000 690 ooo Arno u n t RO 40,000 50 ooo A ssets Cash at Bank Stock Debtors Furniture Land and Buildin s mount O 75,000 40,000 They Adrnit D into Partnership giving him 1/5th share of profits on the ollowin terrns: D brin s in his ca ital Provision is be rnade for outstandin ex Goodwill alread a ars in the books Furniture is to be written down b Stock is to be de reciated Land and Buildin s is to bea reciated b n ses 125,000 105,000 100 ooo 12.50% 7.50% 15.0% Write the Necessary Journal Entries. Prepare Revaluation Account, Ca ital Accounts and Balance sheet o the nn as newl constituted.