Balance Sheet of X and Y, who share profits and losses as 5 : 3 , as at 1st April, 2017 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 2014-15 : Rs. 7,500; 2015-16 : Rs. 4,000; 2016-17 : Rs. 6,500.
(b) Machinery and Stock be revalued at Rs. 45,000 and Rs. 8,000 respectively.
(c) Claim on account of workmen compensation is Rs 6,000. Prepare Revaluation Account Partners Capital Accounts and the Balance Sheeet of the new firm.
