[ISC] Q. 26 Solution of Dissolution of Partnership Firm TS Grewal ISC 2023-24 Edition

Mohan, Dass and Chand were the partners in a firm sharing profits in the ratio of 3 : 2 : 1. The firm was dissolved on 31st March, 2023. After transfer of assets and external liabilities to Realisation Account following transactions took place:

1. (i) Deep, a Creditor, to whom ₹ 30,000 were due, accepted Office Furniture at ₹ 20,000 and the balance was paid to him in cash.
2. (ii) Sharmila, a Creditor, to whom ₹ 80,000 were due, took Machinery of book value ₹ 1,00,000 at ₹ 1,00,000. Balance was paid by her in cash.
3. (iii) Tapas, an Unrecorded Creditor of ₹ 50,000 was paid by Mohan at 10% less.
4. (iv) An Unrecorded Computer of ₹ 40,000 was taken by Dass at that value less 10%.
5. (v) Workmen Compensation Reserve was ₹ 20,000; Workmen Compensation paid was ₹ 10,000.
6. (vi) Prepaid Insurance of ₹ 10,000 and Goodwill of ₹ 50,000 existed in the Balance Sheet but no other additional information was given regarding these two items.

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