Following was the Balance Sheet of A and B who were sharing

58 :- Following was the Balance Sheet of A and B who were sharing profits in the ratio of 2 : 1 as at 31st March, 2025:

They admit C into partnership on 1st April, 2024 on the following terms:
(a) C was to being Rs 7,500 as his capital and Rs 3,000 as goodwill for 1/4th share in the firm.
(b) values of the stock and Plant and Machinery were to be reduced by 5%.
(c) A Provision for Doubtful Debts was to be created on respect of Sundry Debtors Rs 375.
(d) Building was to be appreciated by 10%.
Pass necessary Journal entries to give effect to the arrangements. Prepare Profit & Loss Adjustment Account (or Revaluation Account), Partner’s Capital Accounts and Balance Sheet of the new firm.

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