Following is the Balance Sheet of X, Y and Z as at 31st March, 2019. They shared profits in the ratio of 3 : 3 : 2:

LiabilitiesAmount ( Rs.)AssetsAmount ( Rs.)
Sundry Creditors2,50,000Cash at Bank50,000
General Reserve80,000Bills Receivable60,000
Partners’ Loan A/c : Debtors 80,000
X 50,000Less: Provision for Doubtful Debts – (4,000)76,000
Y – 40,00090000Stock 1,24,000
Capital A/c :Fixed Assets 3,00,000
X1,00,000Advertisement Suspense A/c16,000
Y60,000Profit and Loss A/c4,000
 6,30,000 6,30,000

 On 1st April, 2019, Y decided to retire from the firm on the following terms:
(a) Stock to be reduced by Rs. 12,000.
(b) Advertisement Suspense Account to be written off. 
(c) Provision for Doubtful Debts to be increased to Rs. 6,000.
(d) Fixed Assets be appreciated by 10%.
(e) Goodwill of the firm, valued at Rs. 80,000 and the amount due to the retiring partners be adjusted in X’s and Z’s Capital Accounts.
Prepare Revaluation Account, Partners’ Capital Accounts and the Balance Sheet to give effect to the above


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