A.Capital of new partner Jagdish is cash Rs. 50000 as capital and Rs. 25000 towards goodwill.
B. Depreciate Machinery by 10%
C. Increase provision for doubtful debts by Rs.4000
D.buildings are revalued at Rs. 120500.
Prepare:i)Revaluation account
ii) partners capital account
iii) balance sheet of the firm.

3. Suresh and Shankar are partners in a firm sharing profits and losses ratio of 1 : 1. Their balance sheet as on 31.03.2017 was as follows.
Balance Sheet as on 31.3.2017

Liabilities	Rs	Assets	Rs
Creditors Bills Payable Reserve Fund Capital Accounts: Suresh                      60,000 Shankar                    40,000 Profit and Loss A/c	40,000 45,000 15,000 100,000 30,000	Cash at Bank Stock Debtors            40,000 Less PDD           2,000 Furniture Machinery Buildings Patents	30,000 25,000 38,000 10,000 15,000 92,000 20,000
	2,30,000		2,30,000

On 01.04.2017, they admit Jagadish as a new partner for 1/4th share in the future profits on the following terms: