On 31st March, 2023, Balance Sheet of Ram, Rahul and Rohit sharing profits and losses in proportion of their capitals stood as follows

On 31st March, 2023, Balance Sheet of Ram, Rahul and Rohit sharing profits and losses in proportion of their capitals stood as follows:

On 1st April, 2023, Ram decided to retire from the firm and the remaining or continuing partners decided to carrry on. It was agreed to revalue the assets and liabilities on that date on the following basis:

(i) Land and Building appreciated by 30%.

(ii) Machinery be depreciated by 20%.

(iii) Closing Stock to be valued at ₹ 80,000

(iv) Provision for Doubtful Debts be made @ 5%.

(v) Goodwill of the firm be valued at ₹ 1,80,000 and Ram’s share of the goodwill be adjusted in the accounts of Rahul and Rohit who share in the future profits equally.

(vii) Capital of the new firm is to be same as before retirement, individual capitals of the remaining partners should be in their profit sharing ratio.

(viii) Amount due to Ram is to be settled on the following basis:

50% on retirement and the balance within one year.

Prepare Revaluation Account, Capital Accounts of partners, Bank Account and Balance Sheet of Rahul and Rohit as at 1st April, 2023.