Following was the Balance Sheet of A and B who were sharing profits in the ratio of 2 : 1 as at 31st March, 2019: Liabilities ₹ Assets ₹ Capital A/cs: Building 25,000 A 15,000 Plant and Machinery 17,500 B 10,000 25,000 Stock 10,000 Sundry Creditors 32,950 Sundry Debtors 4,850 Cash in Hand 600 57,950 57,950 They admit C into partnership on the following terms:(a) C was to bring ₹ 7,500 as his capital and ₹ 3,000 as goodwill for 1/4th share in the firm.(b) Values of the Stock and Plant and Machinery were to be reduced by 5%.(c) A Provision for Doubtful Debts was to be created in respect of Sundry Debtor ₹ 375.(d) Building was to be appreciated by 10%.Pass necessary Journal entries to give effect to the arrangements. Prepare Profit and Loss Adjustment Account (or Revaluation Account), Partners' Capital Accounts and Balance Sheet of the new firm.