Following is the balance sheet of Harish and Girish:

Balance Sheet as on 31^st March, 2010

Liabilities	Amount	Amount	Assets	Amount	Amount
Creditors		38000	Cash in Hand		37000
Bills Payable		46000	Stock		21000
Profit & Loss A/c		16000	Debtors	46000
Capital A/c			(-) R.D.D.	-6000	40000
Harish	100000		Equipments		12000
Girish	140000	240000	Furniture		25000
			Plant		85000
			Buildings		120000
		340000			340000

They admitted Shirish on 1^st April, 2010 on the following conditions:

1. For his 1/3 rd share in the future profits, Shirish brings Rs. 2,00,000 as his capital.

2. It is decided to raise goodwill by Rs. 90,000 and write off fully after Shirish's Admission.  

3. Equipments and Plant are to be depreciated by 20% and 10 % respectively and Building is to be appreciated by 15%.

4. Bills Payable were retired for Rs. 35,000.

5. All debtors are to be considered good.

6. Furniture of the book value Rs. 12,000 was taken over by Harish at 40% of the book value.

Prepare, Revaluation A/c. Partners' Capital A/c and Balance Sheet of the new firm.

Solution:

In the books of Partnership firm.

Revaluation A/c

Particulars	Rs.	Rs.	Particulars	Rs.	Rs.
To Equipment A/c		2400	By Buildings A/c		18000
To Plant A/c		8500	By Bills Payable A/c [Rebate Earned]		11000
To Furniture A/c		7200	By R.D.D. A/c		6000
To Partners' Capital A/c (Profit)
Harish	8450
Girish	8450	16900
		35000			35000

Partner's capital Accounts

Particulars	Harish	Girish	Shirish	Particulars	Harish	Girish	Shirish
To Furniture A/c	4800			By Balance b/d	100000	140000
To Goodwill A/c	30000	30000	30000	By Profit & Loss A/c	8000	8000
To Balance C/d	126650	171450	170000	By Cash A/c	-	-	200000
				By Goodwill A/c	45000	45000	-
				By Revaluation A/c	8450	8450	-
	161450	201450	200000		161450	201450	200000

Balance Sheet as on 1^st April, 2013

Liabilities	Amount	Amount	Assets	Amount	Amount
Partners' Capital A/c			Buildings	120000
Harish	126650		(+) Appreciation @ 15%	18000	138000
Girish	171450		Plant	85000
Shirish	170000	468100	(-) Depreciation @ 10%	-8500	76500
Creditors		38000	Equipments	12000
Bills Payable	46000		(-) Depreciation @ 20%	-2400	9600
Less: Rebate	-11000		Furniture	25000
	35000		(-) Furniture taken over	-12000	13000
(-) Cash Paid	35000	NIL	Debtors		46000
			Stock		21000
			Cash in Hand		202000
		506100			506100