The Balance Sheet of X Y and Z who share profits and losses in the ratio of 3 2 1 as on 1st April 20...........

Accountancy ( 12th) Admission of a Partner

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:

Liabilities			Assets
Capital A/cs:			Y's Current Account	7,000
X	1,75,000		Land and Building	1,75,000
Y	1,50,000		Plant and Machinery	67,500
Z	1,25,000	4,50,000	Furniture	80,000
Current A/cs:			Investments	36,500
X	4,000		Bills Receivable	17,000
Z	6,000	10,000	Sundry Debtors	43,500
General Reserve		15,000	Stock	1,37,000
Profit and Loss A/c Creditors Bills Payable		7,000 80,000 45,000	Bank	43,500
		6,07,000		6,07,000

On the above date, W is admitted as a partner on the following terms:

W will bring 50,000 as his capital and get 1/6th share in the profits.
He will bring necessary amount for his share of goodwill premium. Goodwill of the firm is valued at 90,000. (c) New profit-sharing ratio will be 2 : 2 : 1 : 1.

A liability of 7,004 will be created against bills receivable discounted earlier but now dishonoured.
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.
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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