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:                      

LiabilitiesAmount (Rs.)AssetsAmount (Rs.)
Capital A/c : Y’s Current Account7,000
X –  1,75,000Land and Building1,75,000
Y – 1,50,000Plant and Machinery67,500
Z – 1,25,0004,50,000Furniture80,000
Current A/c : Investments36,500
X – 4,000Bills Receivable17,000
Z – 6,00010,000Sundry Debtors43,500
General Reserve15,000Stock1,37,000
Profit and Loss A/c7,000Bank43,500
Bills Payable45,000 
 6,07,000 6,07,000

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.


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