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The Balance Sheet of X,Y and Z who share...

The Balance Sheet of X,Y and Z who share profits and losses in the ratio of 3 : 2 : 1, as on 1st April, 2019 is as follows:

On the above date, W is admitted as a partner on the following terms:
(a) W will bringRs 50,000 as his capital and get 1/6th share in the profits.
(b) He will bring necessary amount for his share of goodwill premium. Goodwill of the firm is valued atRs 90,000.
(c) New profit-sharing ratio will be 2:2:1:1.
(d) A liability ofRs 7,004 will be created against bills receivable discounted earlier but now dishonoured.
(e) The value of stock, furniture and investments is reduced by 20%, whereas the value of Land and Building and Plant and Machinery will be appreciated by 20% and 10% respectively.
(f) Capital Accounts of the partners will be adjusted on the basis of W's Capital through their Current Accounts.
Prepare Revaluation Account, Partners' Accounts and Capital Accounts.

Text Solution

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The correct Answer is:
Loss on Revaluation-Rs8,950; Partners' Current A/cs: X-Rs1,00,525;
Y-Rs47,350 and Z-Rs83,175; Partners' Capital A/cs:
X-Rs1,00,000; Y-₹1,00,000; Z-Rs50,000 and W-Rs50,000.
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