3. Sun and Moon are partners sharing profits and losses in the ratio of [tex]\frac{3}{5}: \frac{2}{5}[/tex]. Their balance sheet as of 31/03/2023 is as follows:

\begin{tabular}{|c|c|c|c|}
\hline
\textbf{Liabilities} & \multicolumn{3}{|c|}{\textbf{Amount(₹)}} \\
\hline
Creditors & 77,500 & \textbf{Assets} & \textbf{Amount(₹)} \\
\hline
Reserves & 20,000 & Cash at Bank & 21,500 \\
\hline
P \& L Account & 5,000 & Stock & 39,000 \\
\hline
Capitals: & & Debtors & 57,000 \\
\hline
Sun & 60,000 & Less: PDD & & \\
\hline
Moon & 30,000 & Furniture & 10,000 \\
\hline
& 1,92,500 & Buildings & 40,000 \\
\hline
& & Machinery & 25,000 \\
\hline
& & & \\
\hline
& & Total & 1,92,500 \\
\hline
\end{tabular}

On 01/04/2023, Star is admitted into the partnership on the following terms:
a. He should bring ₹ 40,000 as capital for a [tex]\frac{1}{4}[/tex] share and ₹ 20,000 towards goodwill.
b. Depreciate furniture by 10% and appreciate buildings by 20%.
c. PDD is decreased to ₹ 2,000.
d. An amount of ₹ 2,000 due to a creditor is not likely to be claimed and hence should be written off.

Prepare:
1. Revaluation Account
2. Partners' Capital Accounts
3. New Balance Sheet of the firm

Let's approach this problem step by step.

### Revaluation of Assets and Liabilities

1. Depreciate Furniture by 10%:
- Original value of furniture: ₹10,000
- Depreciation (10% of ₹10,000): ₹1,000
- New value of furniture: ₹10,000 - ₹1,000 = ₹9,000

2. Appreciate Buildings by 20%:
- Original value of buildings: ₹40,000
- Appreciation (20% of ₹40,000): ₹8,000
- New value of buildings: ₹40,000 + ₹8,000 = ₹48,000

3. Decrease PDD to ₹2,000:
- Original PDD: ₹5,000
- New PDD: ₹2,000
- Gain in PDD: ₹5,000 - ₹2,000 = ₹3,000

4. Write off ₹2,000 from Creditors:
- Original value of creditors: ₹77,500
- Amount written off: ₹2,000
- New value of creditors: ₹77,500 - ₹2,000 = ₹75,500

### Revaluation Account

Revaluation Gains and Losses:
- Furniture Depreciation Loss: ₹1,000
- Buildings Appreciation Gain: ₹8,000
- PDD Gain: ₹3,000
- Creditors Write-off Gain: ₹2,000

Total Gain on Revaluation:
- Net Revaluation Gain: ₹8,000 (Buildings) + ₹3,000 (PDD) + ₹2,000 (Creditors) - ₹1,000 (Furniture) = ₹12,000

### Partners' Capital Accounts

Profit-sharing Ratio:
- Sun: 3/5
- Moon: 2/5

Distribution of Revaluation Gain:
- Sun's share: (3/5) × ₹12,000 = ₹7,200
- Moon's share: (2/5) × ₹12,000 = ₹4,800

Updated Capital Accounts:
- Sun's original capital: ₹60,000
- Moon's original capital: ₹30,000
- Star's capital contribution: ₹40,000 (capital) + ₹20,000 (goodwill)

New Capital Balances:
- Sun's final capital: ₹60,000 + ₹7,200 = ₹67,200
- Moon's final capital: ₹30,000 + ₹4,800 = ₹34,800
- Star's final capital: ₹40,000

### New Balance Sheet as on 01/04/2023

1. Capital Accounts:
- Sun: ₹67,200
- Moon: ₹34,800
- Star: ₹40,000
- Goodwill (Star): ₹20,000
- Total Capital: ₹67,200 + ₹34,800 + ₹40,000 + ₹20,000 = ₹162,000

2. Liabilities:
- Creditors: ₹75,500
- Reserves: ₹20,000
- Total Liabilities: ₹75,500 + ₹20,000 = ₹95,500

3. Assets:
- Cash at Bank: ₹21,500
- Stock: ₹39,000
- Debtors: ₹57,000 (Unchanged, as PDD adjustments are internal)
- Furniture: ₹9,000
- Buildings: ₹48,000
- Machinery: ₹25,000
- Total Assets: ₹21,500 + ₹39,000 + ₹57,000 + ₹9,000 + ₹48,000 + ₹25,000 = ₹199,500

### Summary:

Revaluation Account:
- Furniture Depreciation Loss: ₹1,000
- Buildings Appreciation Gain: ₹8,000
- PDD Gain: ₹3,000
- Creditors Write-off Gain: ₹2,000
- Revaluation Gain: ₹12,000

Partners' Capital Accounts:
- Sun: ₹67,200
- Moon: ₹34,800
- Star: ₹40,000

New Balance Sheet:
- Liabilities: ₹95,500
- Capital Total: ₹162,000
- Assets Total: ₹199,500