Suresh, Chandra and Star were partners in a firm sharing profits and losses in the ratio of 3:1:1. On 1st April, 2018, their balance sheet stood as under

Balance Sheet

as at 1st April, 2018

Amt ()

Land and Building

Machinery

30,000

20,000

Liabilities

Amt

1,50,000

50,000

17,000

10,000

30.000

1,18,000

25,000

Assets

Machinery Replacement Fund Investments

1,50,000 Furniture

25,000 Investments (Market value 28,000)

35,000 Current Assets

17,000 Advertisement Expenditure

20,000 (Deferred revenue)

23,000

30,000

Capital A/cs

Suresh

Chandra

Star

General Reserve

Profit and Loss Account

Machinery Replacement Fund

Investment Fluctuation Reserve

Workmen's Compensation Reserve

Employees' Provident Fund

Creditors

They admitted Earth into partnership for 1/5th share of profits on the above date. Claim on account of workmen's compensation is estimated at 13,000 only. Give the necessary journal entries to adjust the accumulated profits and losses. Also identify the values shown by partners in this case.