Admission of partner:
Balance sheet

Land and building

25000

Adjustment:
Land and building is found to be valued at 25% above cost. It is decided to bring it to its cost.

Let the value of land and building is rs x

So,
x + 25% of x = 25,000
(100x + 25x)/100 = 25,000
125x/100 = 25000
x = (25000 × 100)/125
x = 20,000
Actual value of land and building is rs 20,000 but it is overvalued by rs 5000.
So, it should be debited in revaluation account.
Revaluation A/c.   Dr ... 5000
       To land and building A/c.   5000
.          Revaluation A/c

Dr.                                                 Cr.

Particular	Amount	Particular	Amount
To land and building	5000