X and Y are partners in a firm sharing profits in the ratio of 3 : 2. They admitted Z as a partner and fixed the new profit-sharing ratio as 3 : 2 : 1. At the time of admission of Z, Debtors and Provision for Doubtful Debts appeared at RS.50,000 and RS.5,000 respectively all debtors are good. Pass the necessary Journal entries.

Explanation

(i) Dr. Provision for Doubtful Debts A/c and Cr. Revaluation A/c by -RS.5,000.
(ii) Dr. Revaluation A/c -RS. 5,000, Cr.X's Capital A/c -RS.3,000, and Y's Capital A/c-RS.2,000.