Ilustration 26:Y are partners sharing profits aX and Y arebalance sheet as on 31ston 31st March 2015 was given below:Amount Assetsprofits and losses in the ratio of 2 : 1 respectively. TheirLiabilitiesAmountCapitals;40,00030,000GoodwillMachineryBuildingsDebtorsprovisionBills Receivable16,00050,00040,00050,00030,000CreditorsBills payable30,000100029,00015,00010,000Cash1,50,0001,50,000On 1st April 2015, they decidthe following conditions;12015. they decided to admit Mr. Z into partnership for 1/4th share in future profits onb) Goodwill of the firmishould bring 30,000 towards his capital.dwill of the firm is valued at 18,000 and decided to write it off immediately.c) Buildings to be appreciated by 10%.Create a provision for bad debts @8% on Debtors.e) Depreciate machinery by 5,000.New profit sharing ratio of X, Y and Z would be 2:1:1 respectively in the new firm.Give Journal entries and necessary ledger accounts and balance sheet of new firm.Sr. Accountancy221Question Bank show me the good will account​