JOURNAL ENTRIES

Amrit and Preet were partners in a firm sharing profits and losses in the ratio of
5:3. On 31st March, 2019 their firm was dissolved. On the date of dissolution their Balance
Sheet showed stock of ₹2,00,000 and creditors of ₹1,20,000. After transferring assets (other
than cash in hand and cash at bank) and third-party liabilities to realisation account the
following transactions took place.
a) 40% of the total stock was taken over by Amrit at 10% less than book value.
b) 20% of the total stock was taken over by a creditor of ₹50,000 in full settlement of his
account.
c) The remaining creditors were paid at a discount of ₹5,000.
d) The remaining stock was sold for cash for ₹90,000.
Pass necessary journal entries for the above transactions in the books of the firm.