A, B and C were partners sharing profits and losses in the ratio of 2 : 2 : 1. Their Balance Sheet as at 31st March, 2018 was as follows :
Balance Sheet of A, B and C as at 31st March, 2018
Cash at Bank
Sundry Debtors 1,95,000
Les: Provision for
Doubtful Debts 5,000
On the above date they dissolved the firm and following amounts were realised : Fixed Assets Rs. 6,75,000; Stock Rs. 3,39,000; Debtors Rs. 1,35,000; Creditors were paid Rs. 1,85,000 in full settlement of their claim. Expenses on Realisation amounted to Rs. 19,000.
Pass the necessary journal entries on the dissolution of the firm.