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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% were recovered from him out of 10,000. The full amount was recovered from the balance debtors. On account of this item, the loss in realisation account will be:

Option 1: 5,100

Option 2: 7,000

Option 3: 3,500

Option 4: 2,000


Team Careers360 21st Jan, 2024
Answer (1)
Team Careers360 22nd Jan, 2024

Correct Answer: 7,000


Solution : Answer = Rs. 7,000

Realisation a/c
To S.Assets 34,000 Bank(20,000+7,000) 27,000
Debtors Loss 7,000
34,000 34,000

Hence, the correct option is 2.

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