The Great Goblin questions the group as to why they were in their front porch, who they are, and where they are going. Thorin says they were visiting relatives in the mountains, got caught by a storm, and took shelter in the cave.

The goblins notice the group carrying the sword of Gondolin and recognize it as the one who killed many of their people. They sentence them to death but at that moment the lights go out and great growing blue smoke fills the space; sending lighting toward the goblins and making holes in them.

As the boys make their way into the inn they notice the Council sitting around the fireplace waiting for Tam and Brand to join.

Mistress al'Vere invites the boys to the kitchen so they can get something to eat.

symbol-value returns the value of a variable.

symbol-function returns the closure of a function:

(defun my-greet (person)
  (format "Hello %s" person))

(symbol-function 'my-greet)

Output:

(lambda (person) (format "Hello %s" person))

defun is creating an alias for this lambda. You can confirm this by running pp-macroexpand-last-sexp on any defun.