Following was the Balance Sheet of A, B and C who were equal partners as at 31st March, 2019:
They admit D into partnership from 1st April 2019 and for 1/4th share in the profits on the following terms: (i) D should bring in RS.9,000 for goodwill and RS.15,000 as capital.
Stock and Furniture be reduced by 10%.
(iii) A Provision of 5% on Debtors be created for Doubtful Debts.
(iv) A liability for RS.1,080 be created against dishonoured bills discounted from a NBFC.
(v) The value of the Building is undervalued by RS.8,500.
(vi) The values of liabilities and assets other than cash are not to be altered.
prepare memorandum revaluation account