Solution of Q 9 Dissolution of a Partnership Firm TS Grewal 2022-23 [CBSE]

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 Realisation Account, the following transactions took place:

1. (a) A debtor whose debt of ₹ 90,000 had been written off as bad, paid ₹ 88,000 in full settlement.
2. (b) Creditors to whom ₹ 1,21,000 were due to be paid, accepted stock at ₹ 71,000 and the balance was paid to them by a cheque.
3. (c) Raja had given a loan to the firm of ₹ 18,000. He was paid ₹ 17,000 in full settlement of his loan.
4. (d) Investments were ₹ 53,000 out of which investments worth ₹ 43,000 were taken over by Simar at ₹ 52,000 and the balance of the investments were sold for ₹ 12,000.
5. (e) Expenses on dissolution amounted to ₹ 19,000 and the same were paid by the firm.
6. (f) Profit on dissolution amounted to ₹ 30,000.

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