Chander and Damini were partners in a firm sharing profits and losses equally. On 31st March, 2017 their Balance Sheet was as follows:

On 1st April, 2017 they admitted Elina as a new partner for 1/3rd share in the profits on the following canditions:
(i) Elina will bring RS.3,00,000 as her capital and RS.50,000 as her share of goodwill premium, half of which will be withdrawn by Chander and Damini.
Debtors to the extent of RS.5,000 were unrecorded.
(iii) Furniture will be reduced by 10% and 5% provision for bad and doubtful debts will be created on bills receivables and debtors.
(iv) Value of land and building will be appreciated by 20% .
(v) There being a claim against the firm of for damages, a liability to the extent of RS.8,000 will be created for the same.
Prepare Revaluation Account and Partner's Capital Accounts.

Explanation

Working Notes:
1. Elina's share of goodwill =RS.50,000 (Given) will be distributed between Chander and Damini in their sacrificing ratio, i.e., 1 : 1.
2. Half of goodwill credited to them, i.e., RS.12,500 each is withdrawn by Chander and Damini.