Vasudha and Dewan were partners in a firm sharing profits and losses in the ratio of 2 : 3. The firm was dissolved on 31st March, 2019. After transfer of assets (other than cash) and external liabilities to Realization Account, the following transactions took place :
- Investments of the face value of Rs. 60,000 were sold in the open market for Rs. 63,000 for which a commission of Rs. 700 was paid to the broker.
- Creditors worth Rs. 65,000 were settled by handing over the entire stock to them along with a payment of Rs. 23,000 by cheque.
- There was old furniture which had been completely written off from the books of the firm. It was taken over by Vasudha at Rs. 2,000.
- Dewan undertook to pay Ms. Dewan’s loan of Rs. 45,000.
- Dewan was appointed to look after the process of dissolution for which he was allowed a remuneration of Rs. 7,000. He agreed to bear the dissolution expenses. Actual expenses incurred by Dewan were Rs. 11,000, which were paid by the firm.
- Loss on realisation amounted to Rs. 9,000.
Pass the necessary journal entries to record the above transactions in the books of the firm.