X and Y are partners in a firm sharing profit in the ratio of 3 : 2. Their Balance Sheet as at 31st March, 2019 was as follows:

On 1st April, 2019, they admitted Z as a partner for 1/6ht share on the following terms:
(i) Z brings in RS.40,000 as his share of Capital but he is unable to bring any amount for Goodwill.
(ii) Claim on account of Workmen Compensation is RS.3,000.
(iii) To write off Bad Debts amounted to RS.6,000.
(iv) Creditors are to be paid RS.2,000, more.
(v) There being a claim aganist the firm for damages, liabilities to the extent of RS.2,000 should be created.
(vi) Outstanding rent be brought down to RS.11,200.
(vii) Goodwill is valued at `1_(1//2)` years' purchase of the average profit of last 3 years, less RS.12,000. Profits for the last 3 years amounted to RS.10,000, RS.20,000 and RS.30.000.
Pass Journal entries, prepare Partners' Capital Accounts and opeinig Balance Sheet.

Explanation

Loss on Revaluation -RS.4,200, Partners' Capital Accounts: X-RS.48,440, Y-RS.58,960, and Z-RS.40,000, Z's Capital/Currnet A/c (For Goodwill)-RS.3,000. Total of Balance Sheet-RS.1,85,600.