P and Q were partners in a firm sharing profits and losses equally. On 15th March, 2023 the firm was dissolved. The dissolution resulted in a loss of ₹ 60,000

P and Q were partners in a firm sharing profits and losses equally. On 15th March, 2023 the firm was dissolved. The dissolution resulted in a loss of ₹ 60,000. On that date the capital accounts of P and Q showed credit balances of ₹ 70,000 and ₹ 50,000 respectively. There was a bank balance of ₹ 60,000.

Pass the necessary Journal entries for (I) the transfer of loss to the Capital Accounts of the partners, and (ii) making final payments to the partners.

[Ans. Final payment P ₹ 40,000 and Q ₹ 20,000.]