Niyati, Kartik and Ratik were partners in a firm sharing profits and losses in the ratio of 5:3:2. The firm was dissolved on 31st March, 2019 by the order of the court. After transfer of assets (other than cash) and external liabilities to Realization Account, the following transactions took place :

(a) An unrecorded liability of the firm of Rs. 45,000 was paid by Niyati.

(b) Creditors, to whom Rs. 67,000 were due to be paid, accepted furniture at Rs. 35,000 and the balance was paid to them in cash.

(c) Kartik had given a loan of Rs. 18,000 to the firm which was paid to him.

(d) Stock worth Rs. 85,000 was taken over by Ratik at Rs. 72,000.

(e) Expenses on dissolution amounted to Rs. 6,000 and were paid by Kartik.

(f) Loss on dissolution amounted to Rs. 40,000.

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

Marks-6, CBSE:2019-20/Main/05/Q-19

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