The Balance Sheet of Rajesh, Pramod and Nishant who were sharing profits in proportion to their capitals stood as on March 31, 2007: Books of Rajesh, Pramod and Nishant n44 Balance Sheet as on March 31, 2007 Amount Amount Rs 12.000 10,500 500 Liabilities Bills Payable Sundry Creditors Reserve Fund Capital Accounts: Rajesh Pramod Nishant Rs Assets 6,250 Factory Building 10,000 Debtors 2.750 Less: Reserve Bills Receivable Stock Plant and Machinery 50,000 Bank Balance 69,000 20,000 15.000 15.000 10,000 7.000 15,500 11,500 13,000 69.000 Pramod retired on the date of Balance Sheet and the following adjustments were made: a) Stock was valued at 10% less than the book value. b) Factory buildings were appreciated by 12%. c) Reserve for doubtful debts be created up to 5%. d) Reserve for legal charges to be made at Rs 265. e) The goodwill of the firm be fixed at Rs 10,000. f) The capital of the new firm be fixed at Rs 30,000. The continuing partners decide to keep their capitals in the new profit sharing ratio of 3:2. Pass journal entries and prepare the balance sheet of the reconstituted firm after transferring the balance in Pramod's Capital account to his loan account