Vetri and Ranjit are partners, sharing profits in the ratio of 3:2. Their balance sheet as on 31st December 2017 is as under:
| Liabilities |
Rs. |
Rs. |
Assets |
Rs. |
| Capital accoun |
|
|
Furniture |
25,000 |
| Vetri |
30,000 |
|
Stock |
20,000 |
| Ranjit |
20,000 |
50,000 |
Debtors |
10,000 |
| Reserve fund |
|
45,000 |
Profit and loss A/c (loss) |
10,000 |
| |
|
1,00,000 |
|
1,00,000 |
On 1.1.2018, they admit Suriya into their firm as a partner on the following arrangements.
(i) Suriya brings Rs.10,000 as capital for 1/4 share of profit.
(ii) Stock to be depreciated by 10%
(iii) Debtors to be revalued at Rs.7,500.
(iv) Furniture to be revalued at Rs.40,000.
(v) There is an outstanding wages of Rs.4,500 not yet recorded.
Prepare revaluation account, partners’ capital account and the balance sheet of the firm after admission.
