X, Y and Z were partners, sharing profits in the ratio of 10:7:3 Liabilities Amount (RO) Assets Amount (RO) Creditors General Reserves Capital X Y Z 40,000 20,000 80,000 60,000 20,000 Cash Debtors 30,600 Less: Provision 600 Stock Fixed Assets Buildings 20,000 30,000 70,000 60,000 40,000 220,000 220,000 Z retires on that date subject to the following conditions:a. Fixed assets are to be depreciated by 20% except for buildings worth RO 40,000 (book value), valued at RO 60,000. b. RO 600 to be written off as bad debts and provision for doubtful debts to be done at 4% on debtors. c. That the goodwill of the firm to be valued at RO 32,000 d. Liability for outstanding expenses RO 4,000 to be provided e. Office equipment of RO 8,000 was to be brought into books on the date of retirement f. It was agreed that A and B will share profits equally in the future. Pass necessary Journal entries and prepare necessary accounts by transferring Qs share of Capital to his loan account