A & B were partners in a partnership firm. Due to the ill health of B they decided to dissolve the firm. The position of assets and liabilities on the date of dissolution was:

It was agreed that following transactions will take place:

a) A wanted to start the business in sole proprietorship so he took building and furniture at 10% less than book value.
b) All the debtors proved good except a person C who did not pay ₹10000

The amount recovered from the debtors is:

₹40000

Debtors are of 50000. A debtor named C did not pay 10000. So, realised amount from debtors(50000-10000) = 40000