Q71.X and Y share profits in the ratio of 5 : 3. Their Balance Sheet as at 31st March, 2019 was:

They admit Z into partnership with 1/8th share in profits on 1st April, 2019. Z brings 20,000 as his capital and 12,000 for goodwill in cash. Z acquires his share from X. Following revaluations are also made:

1. Employees' Provident Fund liability is to be increased by 5,000.
2. All Debtors are good.
3. Stock includes 3,000 for obsolete items.
4. Creditors are to be paid 1,000 more.
5. Fixed Assets are to be revalued at 70,000.

Prepare Journal entries, necessary accounts and new Balance Sheet. Also, calculate new profit-sharing ratio