A and B are two partners, dealing in manufacturing steel, sharing profits in the ratio of 2 : 1. They enjoying a buoyant demand of its products as economic growth is about 7% - 8% and the demand for steel is growing. It is planned to set up a new steel plant to encash on the increasing demand. It is estimated that they will require about Rs. 1,00,000. So they admitted, C as a partner. On the date of admission Balance sheet is as follows.

Balance Sheet of A and B

Liabilities	Rs.	Assets	Rs.
Bills Payble	10,000	Cash in hand	10,000
Sundry creditor	58,000	Cash at bank	40,000
Outstanding Expenses	2,000	Sundry Debtors	60,000
Capital	3,30,000	Stock	40,000
A - 1,80,000		Plant and Machinery	1,00,000
B - 1,50,000		Building	1,50,000
	4,00,000		4,00,000

Other information :

1. C will bring in Rs. 1,00,000 as capital and Rs. 60,000 as his share of goodwill for $\frac{1}{4}$ share in profit.
2. Plant is to be appreciated to Rs. 1,20,000 and the value of building is to be appreciated by 10%.
3. Stock is found overvalued by Rs. 4,000.
4. A provision for doubtful debts is to be created at 5% of debtors.
5. Creditors were unrecorded to the extant of Rs. 1,000.

On the basis of above case study, answer the following :