A, B and C were equal partners. Their Balance Sheet as at 31st March, 2022 was as under: B/P ₹ 20,000 Creditors ₹ 40,000

A, B and C were equal partners. Their Balance Sheet as at 31st March, 2022 was as under:

Balance Sheet as at 31st March

Liabilities	₹	Assets	₹
B/P	20,000	Bank	20,000
Creditors	40,000	Stock	20,000
General Reserve	30,000	Furniture	28,000
P/L	6,000	Debtors 45,000 Less: RBDD 5,000	40,000
Capitals: A B C	60,000 40,000 32,000	Land & Building	1,20,000
	2,28,000		2,28,000

  B retired on 1st April, 2022. A and C decided to continue the business sharing profits in the ratio of 3 : 2. Following terms were agreed: (a) Goodwill of the firm was valued at ₹ 57,600. (b) Reserve for bad and doubtful debts to be maintained at 10% on debtors. (c) Land and building to be increased to ₹ 1,32,000. (d) Furniture to be reduced by ₹ 8,000. (e) Rent outstanding (not provided for as yet) was ₹ 1,500. Remaining partners decided to bring sufficient cash in the business to pay off B and to maintain a bank balance of ₹ 24,800. They also decided to readjust their capitals as per their new profit-sharing ratio. Prepare necessary Ledger Accounts and Balance Sheet. [Ans. Gain on Revaluation: ₹ 3,000; Cash paid to B ₹ 72,200; Final Capitals A ₹ 1,05,480 and C ₹ 70,320; A brings in ₹ 47,840 and C brings in ₹ 29,160; B/S Total ₹ 2,37,300.]