Prepare revaluation account , Partners capital account,balance sheet for new firm.

Dear student,

                                            Revaluation A/c

Particulars	Rs.	Particulars	Rs.
To Building A/c To Furniture A/c To Liability for WCF To Gain on Revaluation A/c L    15000 M    7500 N    7500	100000 30000 160000 30000	By Land A/c	320000
	320000		320000

                                                             Partners' Capital A/c

Particulars	L	M	N	Particulars	L	M	N
To N's Capital A/c To N's Loan A/c To M's Current A/c To Bal C/d	100000 955000	50000 120000 477500	797500	By Balance b/d By L's Capital A/c By M's Capital A/c By Revaluation A/c By General Reserve A/c By WCF By L's Current A/c	600000 15000 220000 100000 120000	480000 7500 110000 50000	480000 100000 50000 7500 110000 50000
	1055000	647500	797500		1055000	647500	797500

                                                      Balance Sheet

Liabilities	Rs	Assets	Rs
Capital A/c L  955000 M  477500 N's Loan A/c WCF Creditors L's Current A/c	1432500 797500 160000 240000 120000	Land  Building  Furniture Debtors (400000-2000) Stock Cash  M's Current A/c	1120000 500000 210000 380000 440000 140000 120000
	2750000		2750000

Working Notes:
L's Capital after adjustments = 835000
M's Capital after adjustments = 597500
Thus, firm's new capital = 1432500
​​​​​​
$$\begin{gathered} L\text{'}s new capital = 1432500\times \frac{2}{3} = 955000 \\ M\text{'}s new capital = 1432500\times \frac{1}{3} = 477500 \end{gathered}$$

Regards