After preparing the partners capital account the balance sheet of the new firm is prepared .In the new balance sheet all the assets liabilities and capitals of all the partners are shown with the necessary changes.
Following points should be kept in mind while preparing the balance sheet.

* Unrecorded assets and liabilities should be shown in the new balance sheet

* Goodwill reserve and accumulated profits and losses should not be shown in the new balance sheet. Tne Assets and liabilities which are revalued and are reassessment should be shown at the modified value.

* Those assets and liabilities which are not revalued should be shown in their original value.

* Cash to be shown in the balance sheet can be computed with the help of following formula.

Cash in hand = Opening balance of cash +cash brought in by the new partner + Goodwill brought in cash + Amount withdrawn by old partners.

Preparing a Balance Sheet for Revaluation Account

The revaluation account is prepared to record any changes in the value of assets and liabilities of a partnership firm due to the admission of a new partner. It helps in adjusting the capital accounts of existing partners and determining the new profit sharing ratio.

To prepare a balance sheet for the revaluation account, follow these steps:

1. Identify the Changes: Determine the changes in the value of assets and liabilities due to the admission of a new partner. This includes the revaluation of assets such as land, buildings, machinery, etc., and liabilities like loans, outstanding expenses, etc.

2. Calculate the Revaluation Amount: Calculate the difference between the old and new values of the assets and liabilities. If the value has increased, it is a revaluation gain, and if it has decreased, it is a revaluation loss.

3. Create a Revaluation Account: Open a revaluation account in the books of the partnership firm. The account is usually created in the name of the new partner or as a general revaluation account.

4. Record Revaluation Gains and Losses: Debit the revaluation account with the total revaluation gains and credit it with the total revaluation losses. This will help in adjusting the capital accounts of the existing partners.

5. Adjust the Capital Accounts: Update the capital accounts of the existing partners by transferring their respective shares of revaluation gains or losses from the revaluation account. Debit or credit the partners' capital accounts accordingly.

6. Determine the New Profit Sharing Ratio: After adjusting the capital accounts, determine the new profit sharing ratio between the partners based on their updated capital balances.

7. Prepare the Balance Sheet: Finally, prepare a balance sheet for the revaluation account. Include the revaluation gains or losses as a separate item in the balance sheet. The revaluation gains will be added to the capital balances, while the revaluation losses will be deducted.

Visually Appealing Format:

Preparing a Balance Sheet for Revaluation Account

1. Identify the Changes:
- Determine changes in asset and liability values due to the admission of a new partner.

2. Calculate the Revaluation Amount:
- Calculate the difference between old and new values.
- Revaluation gain if increased, revaluation loss if decreased.

3. Create a Revaluation Account:
- Open a revaluation account in the books of the partnership firm.

4. Record Revaluation Gains and Losses:
- Debit revaluation account with total gains.
- Credit revaluation account with total losses.

5. Adjust the Capital Accounts:
- Update capital accounts of existing partners.
- Transfer shares of revaluation gains/losses from revaluation account.

6. Determine the New Profit Sharing Ratio:
- Determine new ratio based on updated capital balances.

7. Prepare the Balance Sheet:
- Include revaluation gains/losses as separate items.
- Add revaluation gains to capital balances, deduct revaluation losses.

By following these steps and organizing the information in a visually appealing format, you can effectively prepare a balance sheet for the revaluation account.