X and Y share profits in the ratio of 5 : 3. Their Balance Sheet as at 31st March, 2019 was:

LiabilitiesAmount (Rs.)AssetsAmount (Rs.)
Creditors15,000Cash at Bank5,000
Employees’ Provident Fund10,000Sundry Debtors – 20,000
Workmen Compensation Reserve5,800Less: Provision for Doubtful Debts – (600)19,400
Capital A/c :Stock25,000
X – 70,000Fixed Assets80,000
Y – 31,0001,01,000Profit and Loss A/c2,400
 1,31,800 1,31,800

They admit Z into partnership with 1/8th share in profits on 1st April, 2019. Z brings Rs. 20,000 as his capital and Rs. 12,000 for goodwill in cash. Z acquires his share from X. Following revaluations are also made:
(a) Employees’ Provident Fund liability is to be increased by Rs. 5,000.
(b) All Debtors are good.
(c) Stock includes Rs. 3,000 for obsolete items.
(d) Creditors are to be paid Rs. 1,000 more.
(e) Fixed Assets are to be revalued at Rs. 70,000. 
Prepare Journal entries, necessary accounts and new Balance Sheet. Also, calculate new profit-sharing ratio.


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