A and B are partners in a firm sharing profits and losses in the ratio of 3:2. Their Balance Sheet as on 31st March, 2020 is as below:Liabilities (t) Assets (t)Capital Accounts: Goodwill 21,000A 80,000 Patents 9,000B 56,000 1,36,000 Land & Building 90,000General Reserve 30,000 Plant & Machinery 16,000Workmen Compensation Reserve 18,000 Furniture 14,000Investment Fluctuation Reserve 5,000 Investments (Market Value 18,000) 25,000Provident Fund 14,500 Computer 10,000Gratuity Fund 4,500 Stock 20,000Trade Creditors 26,000 Trade debtors 15,000Bank Overdraft 11,000 Cash in hand 3,000Cash at Bank 14,000Advertisement Suspense 8,0002,45,000 2,45,000The partners have agreed to take Mr. C as a partner with effect from lstApril, 2020 on the following terms:(1) Mr. C shall bring 30,000 towards his capital and 18,000 towards premium for goodwill towards 20% share in profits.(2) A trade debtor whose dues of 2,000 were written off as bad debts last year, paid 1,500 in full settlement.(3) 1,200 accrued interest on investments remained unrecorded.(4) Unrecorded liability towards outstanding salaries 1,800.(5) 1,700 expenses on account of revaluation paid by partner A.(6) A trade creditor of 1,000 is not likely to be claimed, hence to be written back.(7) The value of plant and machinery is to be increased by 18,000.(8) The value of furniture is to be increased to 18,000.(9) Out of the amount of insurance premium which was debited to Profit and Loss account, 700 to be carried forward to next year.(10) 20% of stock taken over by B at 5% discount and balance valued at 10% above the book value.(11) Patents valued at 5,000.(12) Computer taken over by Partner A for 9,500.(13) Land & Building valued at 120% of its book value.(14) Liability of workmen compensation was determined to be 21,500.(15) A bill of exchange of 6,000 which was previously discounted with the banker, was dishonoured on 31.03.2020 but no entry has been passed for dishonour.(16) Advertisement Expenses of 1,500 are to be carried forward to next accounting period.(17) 1,000 bad debts are to be written off. Make a provision for doubtful debts @ 5% on debtors, provision for discount on debtors @ 2% on debtors and a reserve for discount on creditors @ 4% on trade payables.The cashier had misappropriated cash 920