Pass the journal entry if A took 50% of the stock at a discount of 20%. Book value of stock is ₹4,00,000.

A's Capital A/c          Dr.  ₹160000
   To Realisation A/c                      ₹160000
(Partner took stock)

The correct answer is option 1-
A's Capital A/c          Dr.  ₹160000
   To Realisation A/c                      ₹160000
(Partner took stock)

Book value of stock= ₹4,00,000
50%= ₹2,00,000
Discount = 2,00,000 x 20/100
              = 40,000

Amount of stock taken by A = 2,00,000-40,000
                                           = ₹1,60,000

A has taken over stock so his account is debited with this amount to show the decrease in his capital account an realisation account is credited as stock had already transferred to realisation account. So, journal entry will be-

A's Capital A/c          Dr.  ₹1,60,000
   To Realisation A/c                      ₹1,60,000
(Partner took stock)