Q29.Balance Sheet of X and Y, who share profits and losses as 5 : 3, as at 1st April, 2019 is:

On the above date, they decided to change their profit-sharing ratio to 3 : 5 and agreed upon the following:

a

Goodwill be valued on the basis of two years' purchase of the average profit of the last three years. Profits for the years ended 31st March, are: 2016-17 − 7,500; 2017-18 − 4,000; 2018-19 − 6,500.

b

Machinery and Stock be revalued at 45,000 and 8,000 respectively.

c

Claim on account of workmen compensation is 6,000.

Prepare Revaluation Account, Partners' Capital Accounts and the Balance Sheet of the new firm