Ajay and Vijay are partners sharing profits and losses in the ratio of 3 : 2. Their Balance Sheet as on 31.03.2015 was as follows :
On 01.04.2015, Mr. Sanjay is admitted into partnership on the following terms:
(a) He should bring Rs. 20,000 as capital for the share and Rs 12500 towards goodwill.
(b) Depreciate machinery and furnitures by 10% p.a. each.
(c) Appreciate buildings by 20% p.a.
(d) Increase R.B.D. on Debtors to Rs. 3,000.
(e) Prepaid insurance Rs. 1,000 Prepare:
(i) Revaluation account
(ii) Partners’ capital accounts
(iii) Opening balance sheet of new firm as on 0,1.04.2015
