(i) Calculation of amount of Cash before admission of partner:
Total assets excluding cash= 1200+400+2650+3780= 8030
Total liabilities= 1500+1750+2000+3000= 8250
Therefore, Cash= 8250- 8030
= 220
(ii) JOURNAL
1. Cash a/c... Dr. 3300
To W's Capital a/c 1800
To Premium for goodwill a/c 1500
(Being capital and premium for goodwill brought in by W)
2. Premium for goodwill a/c... Dr. 1500
To X's Capital a/c 500
To Y's Capital a/c 500
To Z's Capital a/c 500
(Being premium for goodwill distributed among the partners in the ratio of 1:1:1)
3. Revaluation a/c... Dr. 270
To Motor Car a/c 250
To Furniture a/c 20
(Being decrease in value of assets transferred to revaluation account)
4. X's Capital a/c.... Dr. 90
Y's Capital a/c.... Dr. 90
Z's Capital a/c.... Dr. 90
To Revaluation a/c 270
(Being loss on revaluation transferred to partner's capital accounts in the ratio of 1:1:1)