Following is the Balance Sheet of X and Y as at 31st March, 2019 who are partners in a firm sh
Channel: Doubtnut
Date: 29/03/2020

Following is the Balance Sheet of X and Y as at 31st March, 2019 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, 2019 on the following terms: (a) Provision for doubtful debts is to be maintained at 5% on Debtors. (b) Outstanding rent amounted to RS.15,000. (c) An accrued income of RS.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 RS.18,000. (e) New Profit-sharing Ratio of partners will be 4 : 3 : 2. (f) Z is to pay an amount equal to his share in firm\'s goodwill valued at twice the average profit of the last three years which were RS.90,000, RS.78,000 and RS.75,000 respectively. (h) Half of the amount of goodwill is to be withdrawn by X and Y. You are required to pass Journal entries, parpare Revaluation Account Partners\' Capital and Current Accounts and the Balance Sheet of the new firm.