Achal and Vichal were partners in a firm sharing profits in the ratio of 3 5 On 31st March 2019 thei......

Achal and Vichal were partners in a firm sharing profits in the ratio of 3 : 5. On 31st March, 2019, their Balance Sheet was as follows:

The firm was dissolved on 1st April, 2019 and the Assets and Liabilities were settled as follows:

a Land and Building realised  4,30,000.

b Debtors realised 2,25,000 withinterest and 1,000 were recovered for Bad Debts written off last year.

c There was an Unrecorded Investment which was sold for 25,000.

d Vichal took over Machinery at 2,80,000 for cash.

e 50% of the Creditors were paid 4,000 less in full settlement and the remaining Creditors were paid full amount. Pass necessary Journal entries for dissolution of the firm.

By: Aman