Following is the Balance Sheet of Subash and Asha as at 31st March, 2019 sharing profits in the ratio of 3 : 2,

They admit Tanya as a partner on 1st April, 2019 for 1/6th share in the profits. It was decided that:
(i) Value of Land and Building be increased by RS.3,000.
(ii) Value of Stock be increased by 2,500.
(iii) Provision for Doubtful Debts be increased by RS.1,500.
(iv) A Bill of Exchange of RS.10,000 which was previously discounted with the banker, was dishonoured on 31st March, 2019 but no entry has been passed for dishonour.
(v) Liability against Workmen Compensation Reserve was determined at RS.20,000.
(vi) Tanya brought in as her share of goodwill RS.10,000 by cheque.
(vii) Tanya was to bring in further cheque of RS.15,000 as her capital.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.

Explanation

Working Notes:
1. Employees' Provident Fund is a liability and, therefore, it will not be distributed.
2.
Workmen Compensation Reserve is a reserve set aside out of workmen compensation is RS.20,000.
Excess Workmen Compensation Claim of RS.5,000 will be debited to Revaluation Account.
`{:(,,RS.,RS.),("Workmen Compensation Claim A/c",...Dr.,"15,000",),("Revaluation A/c",...Dr.,"5,000",),("To Workmen Compensation Claim A/c",,,"20,000"):}`
3. Advertisement Suspense is a deferred revenue expenditure, i.e., loss and therefore, it will be transferred to old partners in their old profit-sharing ratio.
4. When a bill previously discounted is dishonoured, Debtor Account is debited and Bank Account is credited.
5. Bank Balance =RS.21,000+RS.15,000-RS.10,000-RS.10,000 (WN4)=RS.36,000.