The following is the Balance Sheet of a partnership firm as on 31.12.2017:

A and B has been sharing profits in the ratio of 3 : 2. On 1.1.2018, they decide to take C as a partner on the following terms and conditions:

(i) The new profit-sharing ratio will be 2:1:1;

(ii) C is to bring in ₹75,000 as capital;

(iii) Property and motor car are to be revalued at ₹90,000 and ₹13,000 respectively and a provision for doubtful debts to be created at 5%;

C is to bring in required amount of premium for goodwill which will be valued on the basis of two years' purchase of the last three years’ average profits which are as under:(v) The amount of premium to be credited to old partners’ loan accounts.

You are required to pass necessary Journal entries and to draw up the Balance Sheet as on 1.1.2018.

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Capital - A Capital B General Reserve Loan from A Sundry Creditors Outstanding expenses --- Liabilities. ₹ 1,00,000 Property 82,000 Motor car 10,000 Furniture 10,000 Debtors 30,000 Stock 3,000 Cash 2,35,000 Assets ₹ 70,000 15,000 2,000 50,000 90,000 8,000 2,35,000