Following is the Balance Sheet of X and Y as at 31st March, 2018 who are partners in a firm sharing profits and losses in the ratio of 3 : 2 respectively: Z is admitted as a new partner on 1st April, 2018 on the following terms: (a) Provision for doubtful debts is to be maintained at 5% on Debtors. (b) Outstanding rent amounted to ₹ 15,000. (c) An accrued income of ₹ 4,500 does not appear in the books of the firm. It is now to be recorded. (d) X takes over the Investments at an agreed value of ₹ 18,000. (e) New Profit-sharing Ratio of partners will be 4 : 3 : 2. (f) Z will bring in ₹ 60,000 as his capital by cheque. (g) Z is to pay an amount equal to his share in firm’s goodwill valued at twice the average profits of the last three years which were ₹ 90,000 ; ₹ 78,000 and ₹ 75,000 respectively. (h) Half of the amount of the goodwill is to be withdrawn by X and Y. You are required to pass journal entries, prepare Revaluation Account, Partners Capital and Current Accounts and the Balance Sheet of the new firm.

Following is the Balance Sheet of X and Y as at 31st March, 2018 who a

1.	Following is the Balance Sheet of X and Y as at 31st March, 2018 who are partners in a firm sharing profits and losses in the ratio of 3 : 2 respectively: Z is admitted as a new partner on 1st April, 2018 on the following terms: (a) Provision for doubtful debts is to be maintained at 5% on Debtors. (b) Outstanding rent amounted to ₹ 15,000. (c) An accrued income of ₹ 4,500 does not appear in the books of the firm. It is now to be recorded. (d) X takes over the Investments at an agreed value of ₹ 18,000. (e) New Profit-sharing Ratio of partners will be 4 : 3 : 2. (f) Z will bring in ₹ 60,000 as his capital by cheque. (g) Z is to pay an amount equal to his share in firm’s goodwill valued at twice the average profits of the last three years which were ₹ 90,000 ; ₹ 78,000 and ₹ 75,000 respectively. (h) Half of the amount of the goodwill is to be withdrawn by X and Y. You are required to pass journal entries, prepare Revaluation Account, Partners Capital and Current Accounts and the Balance Sheet of the new firm.
Answer» rnal ENTRIES, Revaluation Account, Partners Capital and Current ACCOUNTS and the Balance Sheet of the new firm are CALCULATED below:Explanation:Calculation of Z's share for Goodwill Average Profit Firm's Goodwill Z's share Goodwill 36,000 will be shared by X and Y in sacrificing ratio.Calculation of Sacrifidng Ratio Sacrifidng Ratio = Old Ratio-New Ratio X's Sacrifice Ratio Y's Sacrifice Ratio Sacrificing Ratio X and YCalculation of Share of PREMIUM of Goodwill Calculation of Distribution of LOSS on Revaluation

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