X and Y are partners sharing profits and losses in the ratio of 3/4 and 1/4. Their Balance Sheet as at 31st March, 2019 is:
|
Liabilities |
₹ |
Assets |
₹ |
Capital A/cs: |
|
Land and Building |
1,25,000 |
X |
1,50,000 |
|
Furniture |
5,000 |
Y |
80,000 |
2,30,000 |
Stock |
1,00,000 |
Workmen Compensation Reserve |
|
20,000 |
Sundry Debtors |
80,000 |
Sundry Creditors |
|
1,50,000 |
Bills Receivable |
15,000 |
Bills Payable |
|
37,500 |
Cash at Bank |
1,00,000 |
|
|
|
Cash in Hand |
12,500 |
|
|
4,37,500 |
|
4,37,500 |
|
|
|
|
|
They admit Z into partnership on 1st April, 2019 on the following terms:
(a) Goodwill is to be valued at ₹ 1,00,000.
(b) Stock and Furniture to be reduced by 10%.
(c) A Provision for Doubtful Debts is to be created @ 5% on Sundry Debtors.
(d) The value of Land and Building is to be appreciated by 20%.
(e) Z pays ₹ 50,000 as his capital for 1/5th share in the future profits.
You are required to show Revaluation Account, Partners' Capital Accounts and Balance Sheet of the new firm.