R, S and T were partners in a firm sharing profits in 2 : 2 : 1 ratio. On 1-4-2021 their Balance Sheet was as follows:

R, S and T were partners in a firm sharing profits in 2 : 2 : 1 ratio. On 1-4-2021 their Balance Sheet was as follows:

Liabilities	₹	Assets	₹
Bank Loan	12,800	Cash	51,300
Sundry Creditors	25,000	Bills Receivable	10,800
Capitals: R S T	80,000 50,000 40,000	Debtors	35,600
Profit and Loss A/c	9,000	Stock	44,600
		Furniture	7,000
		Plant and Machinery	19,500
		Building	48,000
	2,16,800		2,16,800

S retired from the firm on 1.4.2021 and his share was ascertined on the revaluation of assets as follows: Stock ₹ 40,000; Furniture ₹ 6,000; Plant and Machinery ₹ 18,000; Building ₹ 40,000; ₹ 1,700 were to be provided for doubtful debts. The goodwill of the firm was valued at ₹ 12,000. S was to be paid ₹ 21,680 in cash on retirement and the balance in three equal quarterly instalments (Starting from 30th June 2021) along with interest @ 12% p.a. Prepare Revaluation Account, Partner’s Capital Accounts, S’s Loan Account and Balance Sheet on 1.4.2021. [Ans. Loss on Revaluation ₹ 16,800; S’s Loan A/c ₹ 30,000; Capital A/cs : R ₹ 73,680 and T ₹ 36,840; Balance Sheet Total ₹ 1,78,320.] Hint: Payment of S’s Loan A/c : ₹ 10,900 on 30th June 2021; ₹ 10,600 on 30th Sept. 2021 and ₹ 10,300 on 31st Dec. 2021.