Salim and Karim are partners in a firm sharing Profit and Losses equally. Their Balance sheet as on 31st (March 2013) was as follows:
On this day they admitted Rahim as a partner on the following terms:
a) Rahim should bring Rs.20,000 as capital for \(\frac{1}{3}\)share and Rs. 10,000 for goodwill.
b) Land and Buildings is revalued at Rs.100000 and stock at 10% less than book value.
c) Debtors are provided Rs.2,500 for Doubtful debts.
Give journal entries and prepare Revaluation Account, Capital Account and Balance Sheet after the admission of Rahim.
