Lalit and Madan were partners in a firm sharing profits and losses in the ratio of 7 : 3. On 31st March, 2024 their firm was dissolved. After transferring sundry assets (other than cash) and third-party liabilities to Realisation Account, the following transactions took place:
\begin{itemize}
\item[(i)] The firm had stock of \rupee2,00,000. 40% of this stock was taken over by a creditor of \rupee1,00,000 in full settlement of his claim. The remaining stock was sold at a loss of 10%.
\item[(ii)] The remaining creditors were paid \rupee2,10,000.
\item[(iii)] Plant and Machinery of \rupee5,00,000 were accepted by Mrs. Madan against the settlement of her loan of \rupee5,40,000.
\item[(iv)] Debtors of \rupee3,50,000 were sold to a debt collection agency who charged a commission of \rupee25,000.
\item[(v)] Investments of \rupee1,00,000 were taken over by the partners in their profit-sharing ratio.
\item[(vi)] Expenses of dissolution were \rupee8,000.
\end{itemize}
Pass necessary journal entries for the above transactions in the books of the firm.
