Achal and Vichal were partners in a firm sharing profits in the ratio of 3 : 5. On 31st March, 2018 their Balance Sheet was as follows:
The firm was dissolved on 1st April, 2018 and the Assets and Liabilities were settled as follows:
(a) Land and Building b realised Rs. 4,30,000.
(b) Debtors realised Rs. 2,25,000 (with interest) and Rs. 1,000 were recovered for Bad Debts written off last year.
(c) There was an Unrecorded Investment which was sold for Rs. 25,000.
(d) Vichal took over Machinery at Rs. 2,80,000 for cash.
(e) 50% of the Creditors were paid Rs. 4,000 less in full settlement and the remaining Creditors were paid full amount. Pass necessary journal entries for dissolution of the firm
