A, B and C are partners in a firm sharing profits in the ratio of 3 : 2 : 1. On 1st April, 2019,their Balance Sheet is as follows:

On the above date, D is admitted on the following terms:
(i) D will bring RS.1,00,000 as his capital and will get 1/6th share in profits.
(ii) he will bring necessary amount for his share of goodwill premium. Goodwill of the firm was valued at RS.1,80,000.
(iii) The new profit-sharing ratio will be 2 : 2 : 1 :1.
(iv) A Bill Reveivable of RS.14,008 discounted with Bank was dishonoured, which is to be recorded in the books of account.
(v) Value of Stock, Furniture and Investments is reduced by 20% whereas the value of Land and Building and Plant and Machinery will be appreciated by 20% and 10% respectively.
Capital Accounts of the partners will be adjusted on the basis of D's capital through their Current Accounts.
Prepare Revaluation Account Partners' Currnet Accounts Capital Accounts and Balance Sheet.

Explanation

1. Calculation of Sacrificing Ratio:
Sacrifice = Old Share -New Share
Old Ratio of A, B and C = 3 : 2 : 1.
New Ratio of A, B, C and D = 2 : 2 : 1 : 1
A's Sacrifice `=(3)/(6)-(2)/(6)=(1)/(6),"B's Sacrifice"=(2)/(6)-(2)/(6)=0,"C's Sacrifice"=(1)/(6)-(1)/(6)=0`
Since sacrifice of B and C is zero, it implies that A sacrificed entire 1/6th share in favour of D.
2. Goodwill of the firm =RS.1,80,000
Goodwill for 1/6th share `RS.1,80,000xx1//6=RS.30,000`
Goodwill payable to A by D =RS.30,000.
3. Capital of the Partners in the New firm on the basis of D's Capital:
Total Capital of the New Firm `=("D's Capital")/("D's Share of Profit")=(RS.1,00,000)/(1//6)=RS.2,00,000,`
Thus, A's Capital `RS.60,00,000xx2//6=RS.2,00,000,"B's Capital" =RS.6,00,000xx2//6=RS.2,00,000,`
`"C's Capital"=RS.6,00,000xx1//6=RS.1,00,000,"and D's Capital"RS.1,00,000`.
4. Bank Balance: RS.87,000 (Opening Balance )+RS.1,30,000 (D's Share of Goodwill and Capital)
-RS.14,008 (Payment for dishonoured discounted bill)=RS.2,02,992.