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Question : Adiraj and Karan were partners in a firm sharing profits and losses in the ratio 3: 2. On 31st March 2018 the firm was dissolved. After the transfer of assets (other than cash in hand and at the bank) and third-party liabilities to the Realization Account, the following information was provided:
Question:
A bill receivable of Rs. 3,000 under discount was dishonoured as the acceptor had become insolvent and hence the bill had to be met by the firm. The Journal entry will be

Option 1: Bill receivable account debited and bank account credited Rs 3,000

Option 2: Realisation account debited Rs 3,000 and credited B/R account Rs 3,000

Option 3: Realisation account debited Rs 3,000 and credited bank account Rs 3,000

Option 4: None of the above


Team Careers360 8th Jan, 2024
Answer (1)
Team Careers360 23rd Jan, 2024

Correct Answer: Realisation account debited Rs 3,000 and credited bank account Rs 3,000


Solution : Answer = Realization account debited Rs 3000 and credited bank account Rs 3000

When BIR under-discounted and dishonoured as an acceptor became insolvent, the Bill had to be met by the firm.

Realisation Alc Dr. 3000
To Bank A/c 3000
Hence, the correct option is 3.

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