E, F and G were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On March 31, 2017, their firm was dissolved. On the date of dissolution, the Balance Sheet of the firm was as follows:

E, F and G were partners in a firm sharing profits in the ratio of 2 : 2 : 1. On March 31, 2017, their firm was dissolved. On the date of dissolution, the Balance Sheet of the firm was as follows:

Liabilities	₹	Assets	₹
Capitals: E F	1,30,000 1,00,000	G’s Capital	500
Creditors	45,000	Profit & Loss Account	10,000
Outstanding Expenses	17,000	Land & Building	1,00,000
		Furniture	50,000
		Machinery	90,000
		Debtors	36,500
		Bank	5,000
	2,92,000		2,92,000

  F was appointed to undertake the process of dissolution for which he was allowed a remuneration of ₹ 5,000. F agreed to bear the dissolution expenses. Assets realized as follows: (i) The Land & Building was sold for ₹ 1,08,900. (ii) Furniture was sold at 25% of book value. (iii) Machinery was sold as scrap for ₹ 9,000. (iv) All Debtors were realised at full value. Creditors were payable on an average of 3 months from the date of dissolution. On discharging the Creditors on the date of dissolution, they allowed a discount of 5%. Pass necessary Journal entries for dissolution in the books of the firm. [Ans. Loss on Realisation ₹ 1,12,350; Net amount received from G ₹ 24,970 and Final Payment made to E ₹ 81,060 and F ₹ 56,060.]