Q84 Following is the Balance Sheet of X and Y as at 31st March 2019 who are partners in a firm shari......

Q84.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:

1. Provision for doubtful debts is to be maintained at 5% on Debtors.
2. Outstanding rent amounted to 15,000.
3. An accrued income of 4,500 does not appear in the books of the firm. It is now to be recorded.
4. X takes over the Investments at an agreed value of 18,000.
5. New Profit-sharing Ratio of partners will be 4 : 3 : 2.
6. Z will bring in 60,000 as his capital by cheque.
7. 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 90,000; 78,000 and 75,000 respectively.
8. Half of the amount of goodwill is to be withdrawn by X and Y.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.

By: Aman