X and Y share profits in the ratio of 5:3

62 :- X and Y share profits in the ratio of 5:3. Their balance sheet as at 31^st March, 2025 was

They admit Z into partnership with 1/8th share in profits on 1st April, 2024. Z brings Rs 20,000 as his capital and Rs 12,000 for goodwill in cash. Z acquires his share from X. following revaluations are also made
(a) Employees provident fund liability is to be increased by Rs 5,000
(b) All debtors are good.
(c) Stock includes Rs 3,000 for obsolete items. Hence, are to be written off.
(d) Creditors are to be paid Rs 1,000 more
(e) Fixed assets are to be revalued at Rs 70,000
Prepare journal entries, necessary accounts and balance sheet. Also, calculate new profit sharing ratio.

Solution :-