A, B and C are partners sharing profits and losses in the ratio of 3 : 2 : 1 respectively. Their Balance Sheet as at 31st March, 2019 is as follows:

D is admitted as a partner on 1st April, 2019 for equal share. His capital is to be RS.50,000. Following adjustments are agreed on D's admission:
(a) Out of the Creditors, a sum of RS.10,000 is due to D, it wil be adjusted aganist his capital.
(b) Advertisement Expenses of RS.1,200 are to be carried forward as Prepaid Expenses.
(c) Expenese debited in the Profit and Loos Account includes a sum of RS.2,000 paid for B's personal expenses.
(d) A Bill of Exchange of RS.4,000, which was previously discounted with the bank, was dishonoured on 31st March, 2019 but entry was not passed for dishonour.
(e) A Provision for Doubtful Debts @5% is to be created against Debtors.
(f) Expenses on Revaluation amounted to RS.2,100 is paid by A. Prepare necessary Ledger Accounts and Balance Sheet after D's admission.

Answer

Loss on Revaluation-RS.600; Partners' Capital A/cs: A-RS.61,800; B-RS.57,800; C-RS.39,000; D-RS.50,000; Balance Sheet Total -RS.2,39,500.

Explanation

When a bill previously discounted, is dishonoured, Debtor's Account is debited and Bank Account is credited, i.e., Debtor's balance is increased and Bank balance is decreased.