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To assist you with the problem in the image, I will break down the key parts of the question and then provide guidance on how to tackle it.

### Problem Breakdown:
1. **Balance Sheet Analysis (As on 31st March, 2024)**:
   - Liabilities: 
     - Creditors: ₹30,000
     - Bills Payable: ₹20,000
     - Outstanding Expenses: ₹25,000
     - General Reserve: ₹50,000
     - Capitals (X, Y, Z): ₹1,80,000 (₹50,000, ₹60,000, ₹70,000 respectively)
   - Assets:
     - Land: ₹85,000
     - Building: ₹50,000
     - Plant: ₹1,00,000
     - Stock: ₹40,000
     - Debtors: ₹25,000
     - Cash: ₹5,000

2. **Changes from 1st April, 2024**:
   - **Goodwill** to be valued at ₹60,000.
   - **Revaluation**:
     - Land is revalued at ₹1,00,000.
     - Building is depreciated by 6%.
   - **Creditors** amounting to ₹3,000 will not be paid.

### Requirements:
- (a) Record the necessary **journal entries** to reflect the above changes.
- (b) Prepare **Revaluation Account** and **Capital Accounts** of the partners.

### Step-by-Step Guidance:

#### (a) Journal Entries:

1. **Goodwill Valuation**:
   - Goodwill Adjustment between Partners (Old and New ratio): 
   ```text
   Partner’s Capital Accounts Dr (in Old Ratio)
       To Goodwill A/c ₹60,000
   ```
   The old partners (X, Y, Z) would adjust their capitals according to the old ratio and give effect to the new ratio.

2. **Land Revaluation**:
   - The increase in land value will be credited to the Revaluation Account.
   ```text
   Land A/c Dr ₹15,000
       To Revaluation A/c ₹15,000
   ```

3. **Depreciation on Building**:
   - Depreciation on the building is 6% of ₹50,000, i.e., ₹3,000.
   ```text
   Revaluation A/c Dr ₹3,000
       To Building A/c ₹3,000
   ```

4. **Creditors Write-off**:
   - Write off the ₹3,000 in creditors:
   ```text
   Creditors A/c Dr ₹3,000
       To Revaluation A/c ₹3,000
   ```

#### (b) Preparation of Accounts:

1. **Revaluation Account**:
   This account captures the net effect of the increase/decrease in the value of assets and liabilities.
   ```text
   Dr.                 Revaluation Account               Cr.
   ----------------------------------------------------------------
   Particulars            ₹             |   Particulars           ₹
   Building Depreciation  3,000          | Land Revaluation        15,000
   Creditors Write-off    3,000          |
   ----------------------------------------------------------------
   Total                  6,000          | Total                   15,000
   ----------------------------------------------------------------
   Profit on Revaluation  9,000 (Transferred to Capital Accounts of X, Y, Z)
   ```

2. **Capital Accounts**:
   The partners' capital accounts will be adjusted based on the profit from the revaluation account, the goodwill adjustment, and the new profit-sharing ratio (1:2:3).
   
   **Example of Capital Adjustment**:
   - Distribute revaluation profit in the old profit-sharing ratio.
   - Adjust goodwill between partners.

---

Would you like me to prepare the detailed Capital Account, or do you have specific questions about any part?

Here are 5 relative questions to explore further:
1. How would you calculate the new capital balances for each partner after the adjustments?
2. What would the entries look like for goodwill when partners change their profit-sharing ratio?
3. How are revaluation profits typically distributed among partners?
4. How would unpaid creditors affect the overall liabilities in the balance sheet?
5. What happens to the general reserve during revaluation?

**Tip**: Always double-check the calculations for depreciation and goodwill adjustments to ensure accurate capital distributions.

From 1st April 2024, the partners decided to share profits in the ratio of 1:2:3. The adjustments include goodwill of ₹60,000, revaluation of land at ₹1,00,000, depreciation on building by 6%, and writing off ₹3,000 of creditors. Journal entries, revaluation account, and capital accounts are required.

Explore how to make journal entries, revalue land, depreciate building, and adjust partner's capital accounts based on the new profit-sharing ratio in a partnership from April 2024. Includes ₹60,000 goodwill, land revaluation at ₹1,00,000, and a detailed revaluation account.

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