Azad and Babli are partners in a firm sharing profits and losses in the ratio of 2:1. Chintan is admitted into the firm with 1/4 share in profits. Chintan will bring in Rs 30,000 as his capital and the capitals of Azad and Babli are to be adjusted in the profit sharing ratio. The Balance Sheet of Azad and Babli as on December 31, 2016 (before Chintan’s admission) was as follows: Balance Sheet of A and B as on 31.12.2016 Liabilites Amount (Rs) Assets Amount (Rs) Creditors 8,000 Cash in hand 2,000 Bills payable 4,000 Cash at bank 10,000 General reserve 6,000 Sundry debtors 8,000 Capital accounts: Stock 10,000 Azad 50,000 Funiture 5,000 Babli 32,000 82,000 Machinery 25,000 Buildings 40,000 1,00,000 1,00,000 It was agreed that:i) Chintan will bring in Rs 12,000 as his share of goodwill premium.ii) Buildings were valued at Rs 45,000 and Machinery at Rs 23,000.iii) A provision for doubtful debts is to be created 6% on debtors.iv) The capital accounts of Azad and Babli are to be adjusted by opening current accounts. Record necessary journal entries, show necessary ledger accounts and prepare the Balance Sheet after admission.