Verma and Sharma were partners sharing profits in the ratio of 3 : 1 on 31-3-2011. Their Balance Sheet was as follows: BALANCE SHEET OF VERMA AND SHARMA as on 31-3-2011 LiabilitiesAmount AssetsAmount(Rs)(Rs)Capital :Land and Building 70,000 Verma 1,20,000Machinery 60,000 Sharma 80,0002,00,000Debotrs 80,000Creditors 70,000Bank 60,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,70,000¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯¯2,70,000 The firm was dissolved on 1-4-2011 and the assets and liabilities were settled as follows : (i) Creditors of Rs 50,000 took over land and building in full settlement of their claim. (ii) Remaining creditors were paid in cash. (iii) Machinery was sold at a depreciation of 30% (iv) Debtors were collected at a cost of Rs 500. (v) Expenses of realisation were Rs 1,700. Pass necessary Journal Entries for the dissolution of the firm.