X and Y are partners in 3:1. Following is their balance sheet

Balance Sheet (31.3.2022)

Rs.

Assets

Rs.

Liabilities

Land & Buildings

2,00,000

Capitals:

Furniture

80,000

1,80,000

50,000

y:

1,00,000

2,80,000

Stock

Debtors

80,000

60,000

Reserve

Workmen Comp. Reserve

40,000

Cash at Bank

20,000

S. Creditors

50,000

4,30,000

4,30,000

They decided to admit Z as a partner for 1/4th share, which he acquires entirely from X. Following adjustments were also made a.

Make a provision equal to 5% on debtors for doubtful debts.

b.

Claim against workmen compensation was determined at rupees

32,000.

c.

Land and building were appreciated by 25%.

d.

Z brought rupees 1,20,000 as his capital and rupees 40,000 as his share of goodwill in cash.

e.

It was also decided to re-adjust the capitals of old partners on the basis of new ratio by taking Z's capital as base.

Necessary adjustments were made by introducing withdrawing cash.

Prepare Revaluation account and Partners' capital account.