Lal and Pal were partners in a firm sharing profits in the ratio of 3 : 7. On 1st April, 2015 their firm was dissolved. After transferring assets (other than cash and outsider’s liabilities to Realisation Account, you are given the following information :
(a) A creditor of Rs. 3,60,000 accepted machinery valued at Rs.5,00,000 and paid to the firm Rs 1,40,000.
(b) A second creditor for Rs. 50,000 accepted stock Rs. 45,000 in full settlement of his claim.
(c) A third creditor amounting to 90,000 accepted Rs 45,000 in cash and investments worth Rs.43,000 in full settlement of his claim.
(d) Loss on dissolution was Rs. 15,000. Pass necessary journal entries for the above transactions in the books of firm assuming that all payments were made by cheque.
