Sundry creditors were settled at a discount of 5%

S & Y are partners with profit sharing ratio as 2:1. The position of the firm 31st December 2004 when they decided to dissolve the business was as follows:

Liabilities Rs. Assets Rs.
Sundry Creditor 1,50,000 Plant & Machinery 2,50,000
General Reserve 1,00,000 Furniture 40,000
Capital Accounts: Stock 1,00,000
S quad2,20,000 Debtors 2,00,000
Y quad2,20,000 4,40,000 Cash at bank 1,00,000
Total 6,90,000 Total 6,90,000

The details or realization was as follows:
1. S took over plant & machinery and furniture at book value less 10%
2. Y took over the stock at Rs. 1,75,000
3. Debtors realized Rs. 1,85,000
4. Sundry creditors were settled at a discount of 5%

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Required: Prepare necessary journal entries and ledger accounts to close the books of the firm.

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