X and Y are Partners sharing profits in the ration of 2:1. Their Balance Sheet as at 31st March, 2019 was:

They admit Z into partnership on the same date on the following terms:
(a) Z brings inRs 40,000 as his capital and he is given 1/4th share in profits.
(b) Z brings inRs 15,000 for goodwill, half of which is withdrawn by old partners.
(c) Investment are valued atRs 10,000. X takes over Investment at this value.
(d) Printer is to be reduced (depreciated) by 20% and Fixed Assets by 10%.
(e) An unrecorded stock of Stationery on 31st March, 2019 isRs 1,000.
(f) By bringing in or withdrawing cash, the Capitals of X and Y are to be made proportionate to that of Z on their profit-sharing basis.
Pass Journal entries, prepare Revaluation Account, Capital Accounts and new Balance Sheet of the firm.

Answer

Loss on Revaluation-Rs11,700; Capital A/cs: X-Rs80,000; Y-Rs40,000;
Z-Rs40,000; Cash/Bank Balance -Rs31,700; Balance Sheet Total-Rs1,85,000;
X brings in -Rs5,800; Y withdraws -Rs26,600.