Record journal entry for the following on dissolution of a firm.

Firm has a stock of ₹2,40,000. Arun, a partner took over 50% of the stock at a discount of 15%.

Arun's Capital A/c D ₹1,02,000
     To Realisation A/c ₹1,02,000

The correct answer is option 3-
Arun's Capital A/c D ₹1,02,000
     To Realisation A/c ₹1,02,000

Stock value = 2,40,000
Taken by partner = 50%
Value taken by partner = 2,40,000 x 50/100
                                  = 1,20,000

This is taken at 15% discount.
Discount = 1,20,000 x 15/100
             = 18,000

Exact value taken by partner = 1,20,000 - 18,000
                                          = 1,02,000

As stock has already transferred to realisation account so now this realisation account is credited and partner account is debited as partner capital balance is reduced by this amount. So, the correct journal entry for this is as follows-
Arun's Capital A/c D ₹1,02,000
     To Realisation A/c ₹1,02,000