L and M were partners in a firm sharing profits in the ratio of `2 : 2 : 3` . On 28th February , 2016 the firm was dissolved . After transferrring assets (other than cash) and outsiders' liabilities to Realisation Account you are given the following information :
(i) A creditors for ₹ 1, 40 , 000 accepted building valued at ₹ 1, 80 , 000 and paid to the firm ₹ 40 , 000 .
(ii) A second creditor for ₹ 30 , 000 accepted machinery valued at ₹ 28 ,000 in full settlement of his claim .
(iii) 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 .
(iv) 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 .

Explanation