Chapter 2 - Practical Activity (Ilome Work) V and K were partners sharing profits and losses as 60% to V and 40% to K. Their Balance Sheet as at 1st January, 2005 stood as under Liabilities Sundry creditors Bills Payable Capital accounts: V: 90,000 K: 80.000 Balance Sheet Amount Assets 96,000 Cash in Hand 34,000 Sundry debtors Stock Plant & machinery 170,000 Land & Buildings Amount 4,000 56,000 40,000 80,000 120,000 300,000 300,000 The partners agreed to admit E into the firm subject to revaluation of the following items: (1) Stock was to be reduced by R.O 4.000 Land and Buildings were to be valued at R.O 160,000 (in) A provision of 2 % was to be created for doubtful debtors (iv) A liability of R.O 2,600 for outstanding expenses had been omitted to be recorded in the books. (v) E contributed R.O 60,000 as his share of capital. Required: Prepare the revaluation account, capital accounts and the balance sheet after the above adjustment