Akul, Bakul and Chandan were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On 31st March, 2018 their Balance Sheet was as follows :

Balance Sheet of Akul, Bakul and Chandan as on 31-3-2018

Liabilities	Amount (Rs. )	Assets	Amount (Rs. )
Sundry Creditors	45,000	Cash at Bank	42,000
Employees Provident Fund	13,000	Debtors                  60,000
General reserve	20,000	Less : Provision for doubtful debts           2,000	58,000
Capitals :		Stock	80,000
Akul                    1,60,000		Furniture	90,000
Bakul                  1,20,000		Plant and Machinery	1,80,000
Chandan                92,000	3,72,000
	4,50,000		4,50,000

  Bakul retired on the above date and it was agreed that : (i) Plant and Machinery was undervalued by 10%. (ii) Provision for doubtful debts was to be increased to 15% on debtors. (iii) Furniture was to be decreased to Rs.  87,000. (iv) Goodwill of the firm was valued at Rs.  3,00,000 and Bakul’s share was to be adjusted through the capital accounts of Akul and Chandan. (v) Capital of the new firm was to be in the new profit sharing ratio of the continuing partners. Prepare Revaluation account, Partners’ Capital accounts and the Balance Sheet of the reconstituted firm.

Marks-8, CBSE:2018-19/Main/01/Q-17*