Lal and Pal were partners in a firm sharing profits in the ratio of `3: 7` . On 1st April 2015 , t
Channel: Doubtnut
Date: 29/03/2020

Lal and Pal were partners in a firm sharing profits in the ratio of `3: 7` . On 1st April 2015 , their firm was dissolved . After transferring assets (other than cash ) and outsider\'s liabilities to Realisation Account , you are given the following information : (a) A creditor of ? 3,60,000 accepted machinery valued at ? 5,00,000 and paid to the firm ? 1,40 ,000 . (b) A second creditor for ? 50,000 accepted stock at ? 45,000 in full settlement of his claim. (c) A third creditor amounting to ? 90,000 accepted ? 45,000 in cash and investments worth ? 43,000 in full settlement of his claim . (d) Loss on dissolution was ? 15,000. Pass necessary Journal entries for the above transactions in the books of firm assuming that all payments were made by cheque.