Simar, Raja and Rita were partners in a firm sharing profits and losses in the ratio of 2 : 2 : 1. The firm was dissolved on 31st March, 2019. After the transfer of assets (other than cash) and external liabilities to the Realization Account, the following transactions took place:

(i) A debtor whose debt of Rs. 90,000 had been written off as bad, paid Rs. 88,000 in full settlement.

(ii) Creditors to whom Rs. 1,21,000 were due to be paid, accepted stock at Rs. 71,000 and the balance was paid to them by a cheque.

(iii) Raja had given a loan to the firm of Rs. 18,000. He was paid Rs. 17,000 in full settlement of his loan.

(iv) Investments were Rs. 53,000 out of which investments worth Rs. 43,000 were taken over by Simar at Rs. 52,000 and the balance of the investments were sold for Rs. 12,000.

(v) Expenses on dissolution amounted to Rs. 19,000 and the same were paid by the firm.

(vi) Profit on dissolution amounted to Rs. 30,000.

Pass the necessary journal entries for the above transactions in the books of the firm. 

Marks-6, CBSE:2019-20/Main/02/Q-19

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