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Question : On dissolution of a firm, debtors Rs. 34,000 were shown in the Balance Sheet. Out of this, Rs. 4000 became bad. One debtor became insolvent. 70% was recovered from him out of Rs.10,000 Full amount was recovered from the balance debtors. On account of this item, the loss in the realisation account will be :

Option 1: Rs 51,000

Option 2: Rs 15,000

Option 3: Rs 35,000

Option 4: Rs 7,000


Team Careers360 16th Jan, 2024
Answer (1)
Team Careers360 25th Jan, 2024

Correct Answer: Rs 7,000


Solution : Answer = Rs 7,000

Realisation a/c
To Sundry assets 34,000 Bank(7,000+20,000) 27,000
Debtors loss 7,000
34,000 34,000

Hence, the correct option is 4.

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