Radha, Sheela and Meena were in partnership sharing profits and losses in the proportion of 3:2:1. On April 1, 2007, Sheela retires from the firm. On that date, their Balance Sheet was as follows:
| Liabilities | Rs.Amt. | Assets | Rs. Amt. |
| Trade creditors | 3,000 | cash in hand | 1,500 |
| Bills payable | 4,500 | cash at Bank | 7,500 |
| Expenses owing | 4,500 | Debtors | 15,000 |
| General Reserve | 13,500 | stock | 12,000 |
capitals
Radha 15,000
sheela 15,000
Meena 15,000 | | Factory premises | 22,500 |
| Machinery | 8,000 |
| 45,000 | Loose tools | 4,000 |
| 70,500 | | 70,500 |
The terms were
(a) Goodwill of the Firm was valued at ? 13,000.
(b) Expenses owing to be brought down to? 3,750.
(c) Machinery and Loose Tools are to be valued at 10% less than their book value.
(d) Factory premises are to be revalued at ? 24,300. Prepare
1. Revaluation account
2. Partners capital accounts
3. Balance sheet of the firm after retirement of Sheela
