What Journal entries would be passed for discharge of following unrecorded liabilities on the dissolution of a firm of partners A and B .
(a) There was a contingent liability in respect of bills discounted but not matured of ₹ 18,500 . An acceptor of one bill of ₹ 2, 500 became insolvent and fifty paise in a rupee was recovered . The liability of the firm on account of this bill discounted and dishonoured has not so far been recorded .
(b) There was a contingent liabillity in respect of a claim for damages for ₹ 75,000 , such liability was settled for ₹ 50 , 000 and paid by the partner A .
(c) Firm will have to pay ₹ 10 , 000 as compensation to an injured employee , which was a contingent liability not accepted by the firm .
(d) ₹ 5,000 for damages claimed by a customer has been disputed by the firm . It was settled at 70% by a compromise between the customer and the firm .

Explanation

(a) (i) Dr. Realisation A/c and Cr. Bank A/c by ₹ 2,500 .
(ii) Dr. Bank A/c and Cr. Realisation A/c by ₹ 1,250 .
(b) Dr. Realisation A/c and Cr. A's Capital A/c by ₹ 50,000 .
(c) Dr. Realisation A/c and Cr. Bank A/c by ₹ 10,000 .
(d) Dr. Realisation A/c and Cr. Bank A/c by ₹ 3,500.