Question

On the dissolution of a partnership firm there were debtors of ₹ 34,000. Debtors of ₹ 1,000 became bad and 60% was realized from the remaining debtors. Which account will be debited and by how much amount on the realisation from debtors?

Options

• Realisation A/c by ₹ 33,000

• Profit & Loss A/c by ₹ 1,000

• Cash A/c by ₹ 19,800

• Debtors A/c by ₹ 14,200 

Answer 1

Cash A/c by ₹ 19,800

Explanation:

Cash realised from creditors = (34,000 − 1,000) × 60% 

= 33,000 × `60/100`

= ₹ 19,800