Balance Sheet of X, Y and Z who shared profits in the ratio of 5 : 3 : 2, as on 31st March, 2019 was as follows:

Liabilities Amount
Sundry Creditors39,750Bank (Minimum Balance)15,000
Employees’ Provident Fund5,250Debtors97,500
Workmen Compensation Reserve22,500Stock82,500
Capital A/c :Fixed Assets1,87,500
 3,82,500 3,82,500

Y retired on 1st April, 2019 and it was agreed that:
(i) Goodwill of the firm is valued at Rs. 1,12,500 and Y’s share of it be adjusted into the accounts of X and Z who are going to share future profits in the ratio of 3 : 2.
(ii) Fixed Assets be appreciated by 20%.
(iii) Stock be reduced to Rs. 75,000.
(iv) Y be paid amount brought in by X and Z so as to make their capitals proportionate to their new profit-sharing ratio.
Prepare Revaluation Account, Capital Accounts of all partners and the Balance Sheet of the New Firm.


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