|Liabilities||Amount (Rs.)||Assets||Amount (Rs.)|
|Capital A/c :||Y’s Current Account||7,000|
|X – 1,75,000||Land and Building||1,75,000|
|Y – 1,50,000||Plant and Machinery||67,500|
|Z – 1,25,000||4,50,000||Furniture||80,000|
|Current A/c :||Investments||36,500|
|X – 4,000||Bills Receivable||17,000|
|Z – 6,000||10,000||Sundry Debtors||43,500|
|Profit and Loss A/c||7,000||Bank||43,500|
On the above date, W is admitted as a partner on the following terms:
(a) W will bring Rs. 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 at Rs. 90,000.
(c) New profit-sharing ratio will be 2 : 2 : 1 : 1.
(d) A liability of Rs. 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’ Current Accounts and Capital Accounts.