Ravi, Shankar and Madhur were partners in a firm sharing profits in the ratio of 7:2:1. On 31st March, 2018, the firm was dissolved, after transferring sundry assets (other than cash in hand and cash at bank) and third party liabilities in the realization account the following transactions took place : (i) Debtors amounting to Rs. 1,40,000 were handed over to a debt collection agency which charged 5% commission. The remaining debtors were Rs.47,000, out of which debtors of Rs. 17,000 could not be recovered because the same became insolvent. (ii) Creditors amounting to Rs. 5,000 were paid Rs. 3,500 in full settlement of their claim and balance creditors were handed over stock of Rs. 90,000 in full settlement of their claim of Rs. 95,000. (iii) A bills receivable Rs. 2,000 discounted with the bank was dishonoured by its acceptor and the same had to be met by the firm. (iv) Profit on realisation amounted to Rs. 6,000. Pass necessary journal entries for the above transactions in the books of Ravi, Shankar and Madhur
