12 :- Simar, Raja and Rita were partners in a firm sharing profit 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 liabilties to the Realisation account, the following transactions took place:
(a) A debtor whose debt of Rs 90,000 had been written off as bad, paid Rs 88,000 in full settlement.
(b) 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.
(c) Raja had given a loan to the firm of Rs 18,000. He was paid Rs 17,000 in full settlement of his loan.
(d) Investment were Rs 53,000 out of which investments of Rs 43,000 were taken by Simar at Rs 52,000 and the balance of the investments were sold for Rs 12,000.
(e) Expenses on dissolution amounted to Rs 19,000 and the same were paid by the firm.
(f) Profit on dissolution amounted to Rs 30,000.
Pass the necessary Journal entries for the above transactions in the books of the firm.
Solution :-
