Narang, Suri and Bajaj are partners in a firm sharing profits and losses in proportion of 12,16 and 13 respectively. The Balance Sheet on April 1, 2007 was as follows Balance SheetDr as on March 31, 2007 CrCapital and LiabilitiesAmt.(Rs)AssetsAmt.(Rs)Bills Payable12,000Freehold Premises40,000Sundry Creditors18,000Machinery30,000Reserves12,000Furniture12,000Capital Account12,000Stock22,000Narang30,000Sundry Debtors20,000Suri30,000(-)Reserve for Bad(1,000)––––––––19,000Bajaj28,000––––––––88,000DebtCash7,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,30,000––––––––––––––––––––¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯1,30,000––––––––––––––––––––Bajaj retires from the business and the partners agree to the following(a) Freehold premises and stock are to be appreciated by 20% and 15% respectively. (b) Machinery and furniture are to be depreciated by 10% and 7% respectively.(c) Bad Debts reserve is to be increased to Rs.1,500.(d) Goodwill is valued at Rs. 21,000 on Bajaj's retirement.(e) The continuing partners have decided to adjust their capitals in their new profit sharing ratio after retirement of Bajaj, Surplus/deficit, if any, in their capital accounts will be adjusted through current accounts.Prepare necessary ledger accounts and draw the Balance Sheet of the reconstituted firm.