Charu and Harsha were partners in a firm sharing profits in the ratio of 3 : 2. On 1st April, 2014, their Balance Sheet was as follows:

On the above date Vaishali was admitted for 1/4th share in the profits of the on the following terms:
(i) Vaishali will bring RS.20,000 for her capital and RS.4,000 for her share of goodwill premium.
(ii) All debtors were considered good.
(iii) The market value of investments was RS.15,000.
(iv) There was a liability of RS.6,000 for Workmen Compensation.
(v) Capital Accounts of Charu and Harsha are to be adjusted on the basis of Vaishali's capital by opening Current Accounts.
Prepare Revaluation Account and Partners' Capital Accounts.

Explanation

Working Notes:
1. "All debtors were considered good" means Provision for Bad Debts is no longer required and hence should be credited to Revaluation Account.
2. Calculation of Partnres' Capital on the basis of Vaishali's Capital: Since, Vaishali bring in RS.20,000 as her Capital for 1/4th share in profits.
Total Capital of the new firm would be `=RS.20,000xx4=RS.80,000`
Charu's Capital in New Firm would be `=RS.80,000xx(3)/(4)xx(3)/(5)=RS.36,000,`
Harsha's Capital in New Firm would be `=RS.80,000xx(3)/(4)xx(2)/(5)=RS.24,000`.
3.`{:("Investment Fluctuation Fund is maintained to meet the fall in market value of investments.",RS.), ("Book Value of investments (Given in the Balance Sheet)","20,000"),("Market Value of Investments",underline "15,000"),("Investment Fluctuation Fund Required to set off loss",underline underline "5,000"),("Balance of Investment Fluctuation Fund (Given in the Balance Sheet)","11,000"),("Less, Investment Fluctuation Fund Required to set off loss",underline "5,000"),("Surplus of Investment Fluctuation Fund",underline underline "6,000"),("Surplus of Investment Fluctuation Fund is transferred to Old Partners Capital Accounts in their Old Profit-sharing Ratio",):}
`{:("Balance of Workmen Compensation Fund (Given in the Balance Sheet)","9,000"), ("Less, Workmen Compensation Fund Required to cover Liability", underline "6,000"),("Surplus of Workmen Compensation Fund",underline underline "3,000"),("Surplus of Workmen Compensation Fund is transferred to Old Partners' Capital Accounts in their Old Profit-shaing Ratio", ):}.