Sophia and Lalit were partners in a firm sharing profits and losses equally. Their firm was dissolved on 31st March, 2025. After transferring sundry assets (other than cash in hand and cash at bank) and the third party liabilities to the Realisation Account, the following transactions took place:
(i) The firm had stock of the book value of Rs 80,000. 50% of the stock was taken over by Sophia at 10% less than its book value and the remaining stock was sold at a gain of 15%.
(ii) There was an unrecorded investment which was sold for Rs 25,000.
(iii) There were debtors of Rs 1,20,000. Debtors realised 90% only and Rs 5,000 were recovered for bad debts written off last year.
(iv) Sophia had given a loan to the firm of Rs 52,000. She was paid Rs 41,000 in full settlement of her claim.
(v) Creditors of Rs 60,000 were paid at a discount of 5%.
(vi) Expenses of realisation amounting to Rs 7,000 were paid by Lalit.
Pass necessary journal entries for the above transactions in the books of the firm.