Narang, Suri and Bajaj are partners in a firm sharing profits and losses in proportion of 1/2 , 1/6 and 1/3 respectively. The Balance Sheet on April 1, 2007 was as follows: Books of Suri, Narang and Bajaj Balance Sheet as on April 1, 2007 Liabilities Amount Rs Assets Amount Rs Bills Payable 12,000 Freehold Premises 40,000 Sundry Creditors 18,000 Machinery 30,000 Reserves 12,000 Furniture 12,000 Capital Accounts: Stock 22,000 Narang 30,000 Sundry Debtors 20,000 Suri 30,000* Less: Reserve 1,000 19,000 Bajaj 28,000 88,000 for Bad Debt Cash 7,000 1,30,000 1,30,000 Bajaj retires from the business and the partners agree to the following:a) Freehold premises and stock are to be appreciated by 20% and 15% respectively.b) Machinery and furniture are to be depreciated by 10% and 7% respectively.c) Bad Debts reserve is to be increased to Rs 1,500.d) Goodwill is valued at Rs 21,000 on Bajaj’s retirement.e) The continuing partners have decided to adjust their capitals in their new profit sharing ratio after retirement of Bajaj. Surplus/deficit, if any, in their capital accounts will be adjusted through current accounts.Prepare necessary ledger accounts and draw the Balance Sheet of the reconstituted firm.*In the given Question Suri’s Capital is Rs 30,000 instead of Rs 20,000.