M/s. Wellore is a partnership firm with the partners X, Y and Z sharing profits and losses in the ratio of 3:2:5. The balance sheet of the firm as…

M/s. Wellore is a partnership firm with the partners X, Y and Z sharing profits and losses in the ratio of 3:2:5. The balance sheet of the firm as on 30th June, 2025 was as under: Balance Sheet of M/s. Wellore as on 30-6-2025 Liabilities Amount (₹) Assets Amount (₹) X's Capital A/c 6,20,000 Land 6,00,000 Y's Capital A/c 4,80,000 Building 11,00,000 Z's Capital A/c 8,00,000 Plant & Machinery 20,00,000 Long Term Loan 21,00,000 Investments 2,10,000 Bank Overdraft 3,20,000 Inventories 6,80,000 Trade Payables 10,65,000 Trade Receivables 7,95,000 53,85,000 53,85,000 It was mutually agreed that Y will retire from partnership and in his place P will be admitted as a partner with effect from 1st July, 2025. For this purpose, following adjustments are to be made: (a) Goodwill of the firm is to be valued at 15 lakhs due to the firm's location advantage but the same will not appear as an asset in the books of the reconstituted firm. (b) Building and Plant & Machinery are to be valued at 95% and 80% of the respective balance sheet values. Investments are to be taken over by the retiring partner at 2,30,000. Trade receivables are considered good only upto 85% of the balance sheet figure. Balance to be considered bad. (c) In the reconstituted firm, the total capital will be 20 lakhs, which will be contributed by X, Z and P in their new profit sharing ratio, which is 3:4:3. (d) The amount due to retiring partner shall be transferred to his loan account. You are required to prepare Revaluation Account and Partners' Capital Accounts after reconstitution, along with working notes.