b) Building to be appreciated by 20% and Machinery to be reduced by 20%.
c) Provide for Rs. 3000 as outstanding legal charges.
d) Provision for doubtful debts to be increased to 15% of Debtors.
e) Rs. 3000 to be carried forward as unexpired insurance.
f) Capital of the new firm at 2,40,000.
Prepare the Revaluation Account, Capital Accounts of the partners and the Balance Sheet of the new firm.