X and Y are partners sharing profits in the ratio of 3 : 2. They admitted Z as a partner for 1/4th share of profits. At the time of admission, of Z. Investments appeared at RS.80,000. Half of the investments to be taken by X and Y in their profit-sharign ratio at books value. Remaining investments were valued at RS.50,000. Pass the necessary Journal entries.

Explanation

(i) Dr. X's Capital A/c-RS-24,000 and Y's Capital A/c-RS.16,000. Cr.Investments A/c-RS.40,000.
(ii) Dr. Investmets A/c and Cr. Revaluation A/c by RS.10,000.
(iii) Dr. Revaluation A/c-RS.10,000, Cr. X's Capital A/c-6,000 and Y's Capital A/c-RS.4,000.