X and Y share profits in the ratio of 5 : 3. Their Balance Sheet as at 31st March, 2018 was: Z is admitted as a new partner on 1st April, 2018 on the following terms: (a) Provision for doubtful debts is to be maintained at 5% on Debtors. (b) Outstanding rent amounted to ₹ 15,000. (c) An accrued income of ₹ 4,500 does not appear in the books of the firm. It is now to be recorded. (d) X takes over the Investments at an agreed value of ₹ 18,000. (e) New Profit-sharing Ratio of partners will be 4 : 3 : 2. (f) Z will bring in ₹ 60,000 as his capital by cheque. (g) Z is to pay an amount equal to his share in firm’s goodwill valued at twice the average profits of the last three years which were ₹ 90,000; ₹ 78,000 and ₹ 75,000 respectively. (h) Half of the amount of the goodwill is to be withdrawn by X and Y. You are required to pass journal entries, prepare Revaluation Account, Partners Capital and Current Accounts and the Balance Sheet of the new firm. They admit Z into partnership with 1/8th share in profits on this date. Z brings ₹ 20,000 as his capital and ₹ 12,000 for goodwill in cash. Z acquires his share entirely from X. Following revaluations are also made: (a) Employees Provident Fund liability is to be increased by ₹ 5,000. (b) All Debtors are good. Therefore, no provision is required on Debtors. (c) Stock includes ₹ 3,000 for obsolete items. (d) Creditors are to be paid ₹ 1,000 more. (e) Fixed Assets are to be revalued at ₹ 70,000. Prepare journal entries, necessary accounts and new Balance Sheet. Also, calculate new profit-sharing ratio.