Mohan, Naresh and Om in partnership sharing profits and losses in the ratio of 10: 4: 1. On 1st April, 2015 their capitals were Rs3,00,000; Rs1,50,000 and Rs50,000 respectively. On this date they admit Piyush as a new partner andnew profit-sharing ratio is agreed at 5: 4: 4:2. The following terms were also agreed upon:(1) Piyush will bring in Rs 40,000 as his capital.(II) He will also bring in his share of goodwill in cash. Goodwill is to be valued on the basis of capitalisation at 10%of the average profits of the last three years were:Year ended 31st March 2013Year ended 31st March 2014Year ended 31st March 2015Rs48,00075,00072,000(III) The new partner is entitled to an annual salary of Rs 7,500 in addition to his share of profit. Om personally guaranteed that Piyush's of profit shall not be less than R$30,000.Profits for the year ended 31 March 2016 amounted to Rs 2,10,000 before charging Piyush's salary. Prepare necessary entries at the time of admission of the new partner and show the distribution of profits for the year ended 31st March, 2016