At the time of admission of a new partner C the assets and liabilities of A and B were revalued as follows:
(a) A Provision for Doubtful Debts @10% was made on Sundry Debtors (Sundry Debtors Rs. 50,000).
(b) Creditors were written back by Rs. 5,000.
(c) Building was appreciated by 20% (Book Value of Building Rs. 2,00,000).
(d) Unrecorded Investments were worth Rs. 15,000.
(e) A Provision of Rs. 2,000 was made for an Outstanding Bill for repairs.
(f) Unrecorded Liability towards suppliers was Rs. 3,000. Pass necessary journal entries.
