L, M and N were partners in a firm shari...

L, M and N were partners in a firm sharing profits in the ratio of 3:2:1. Their Balance Sheet on 31st March, 2015 was as follows:

On the above date, O was admitted as a new partner and it was decided that:
(i) The new profit-sharing ratio between L, M, N and O will be 2:2:1:1.
(ii) Goodwill of the firm was valued atRs 1,80,000 and O brought his share of goodwill premium in cash.
(iii) The market value of investments wasRs 36,000.
(iv) Machinery will be reduced toRs 58,000.
(v) A creditor ofRs 6,000 was not likely to claim the amount and hence was to be written off.
(vi) O will bring proportionate capital so as to give him 1/6th share in the profits of the firm.
Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm.

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