X and Y are partners sharing profits equally. Their Balance Sheet as on 31st March, 2019 is given below :  

Capital A/c :Land and Building1,50,000
X – 1,50,000Plant and Machinery1,00,000
Y – 1,00,0002,50,000Furniture and Fittings25,000
Current A/c :     Stock 75,000
X – 40,000Debtors75,000
Y 30,00070,000Less: Provision for Doubtful Debts – (5,000)70,000
Creditors 1,30,000Bills Receivable30,000
Bills Payable 50,000Bank50,000
 5,00,000 5,00,000

Z is admitted as a new partner for 1/4th  share under the following terms:
(a) Z is to introduce Rs. 1,25,000  as capital.
(b) Goodwill of the firm was valued at nil.
(c) It is found that the creditors included a sum of Rs. 7,500 which was not to be paid. But it was also found that there was a liability for Compensation to Workmen amounting to Rs.  10,000. 
(d) Provision for doubtful debts is to be created @ 10% on debtors.
(e) In regard to the Partners’ Capital Accounts, present Fixed Capital Account Method is to be converted into Fluctuating Capital Account Method.
(f) Bills of Rs. 20,000 accepted from creditors were not recorded in the books.
(g) X provides Rs. 50,000 loans to the business carrying interest @ 10% p.a.  
You are required to prepare Revaluation Account, Partners’ Capital Accounts, Bank Account and the Balance Sheet of the new firm.


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