3. The Balance sheet of P, Q and R who were sharing profits in proportion to their capital stood as under on 31st December 2020: Liabilities Amount Assets Amount (RO) (RO) Creditors 13,800 Cash at Bank 11,000 Debtors Capital 10,000 9,600 P 45,000 Less: Provision 16,200 Q 30,000 400 17,000 R 15,000 Stock 50,000 Machinery Building 103,800 103,800 Q decides to retire on that date and P, Q and R agree to make the following adjustments of the assets and Liabilities: a. Unexpired Insurance of RO 1,500 will be taken in the books of accounts b. Provision for Doubtful debts be brought upto 7 percent c. Land and Building be appreciated by 20 percent d. That a provision of RO 4,000 be made in respect of an outstanding bill for repairs e. That the goodwill of the entire firm be fixed at RO 21,600 and share of the same be adjusted into the accounts of P and R who are going to share in future in the proportion of % and respectively. Pass necessary Journal entries and prepare necessary accounts by transferring Q's share of Capital to his loan account