Balance Sheet of X and Y, who share profits and losses as 5 : 3, as at 1st April, 2019 is:

X’s Capital52,000Goodwill8,000
Y’s Capital54,000Machinery38,000
General Reserve4,800Furniture15,000
Sundry Creditors5,000Sundry Debtors33,000
Employees’ Provident Fund1,000Stock7,000
Workmen Compensation Reserve10,000Bank25,000
  Advertisement Suspense A/c     800
 1,26,800 1,26,800

On the above date, they decided to change their profit-sharing ratio to 3 : 5 and agreed upon the following:
(a) Goodwill be valued on the basis of two years’ purchase of the average profit of the last three years. Profits for the years ended 31st March, are: 2016-17 − Rs. 7,500; 2017-18 − Rs. 4,000; 2018-19 − Rs. 6,500.
(b) Machinery and Stock be revalued at Rs. 45,000 and Rs. 8,000 respectively.
(c) Claim on account of workmen compensation is Rs. 6,000.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet of the new firm.


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