Following was the Balance Sheet of A and B who were sharing profits in the ratio of 2 : 1 as at 31st March, 2018: Liabilities (Rs.) Assets Building Plant and Machinery17,500 Stock Capital A/c: A B Sundry Creditors32,950 15,000 10,000 25,000 (Rs.) 25,000 Sundry Debtors Cash in Hand 10,000 4,850 600 57.950 57,950 They agree to admit C into the partnership on the following terms: (a) C was to bring in Rs.7, 500 as his capital and Rs.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 Debtors Rs.375. (d) Building Account 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), Capital Accounts and Balance Sheet of the new firm.