L and M were partners in a firm sharing profits in the ratio of 2:3. On 28-2-2016 the firm was dissolved. After transferring assets (other than cash) and outsiders' liabilities to realization account you are given the following information:
(a) A creditor for ₹ 1,40,000 accepted building valued at ₹ 1,80,000 and paid to the firm ₹ 40,000.
(b) A second creditor for ₹30,000 accepted machinery valued at ₹28,000 in full settlement of his claim.
(c) A third creditor amounting to ₹70,000 accepted ₹30,000 in cash and investments of the book value of ₹45,000 in full settlement of his claim.
(d) Loss on dissolution was ₹4,000.
Pass necessary journal entries for the above transactions in the books of the firm assuming that all payments were made by cheque.