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Question : At the time of dissolution of a firm, Debtors were Rs. 34000 out of which Rs. 1000 became bad and the rest realised 60%. Which account will be debited and by how much amount?

Option 1: Realisation Account by Rs. 19800

Option 2: Profit and Loss Account by Rs 500

Option 3: Cash Account by Rs. 19800

Option 4: Debtors Account by Rs. 19800


Team Careers360 20th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Cash Account by Rs. 19800


Solution : Answer = Cash Account by Rs. 19800
When assets realised

Debtors 34,000
(-)Bad debt (1,000)
33,000

33,000×60%=19,800

Journal entry:
Bank/Cash a/c.......Dr 19,800
To Realisation a/c 19800
Hence, the correct option is 3.

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