Creditors having a book value of ₹100000 and furniture having a book value of ₹70000 were appearing in the balance sheet of a partnership firm. On 31st March, 2022 the firm was dissolved and creditors decided to take over furniture at 80% of book value and the balance was settled at a 10% discount. Identify the correct option on the basis of the above information.

Creditors will be paid at ₹39600

Book value of furniture = ₹70000
80% value of furniture is 70000 x 80/100
                                      = ₹56000
After taking furniture of book value ₹70000 at ₹56000 remaining creditors will be = 100000 - 56000
                                                                                                                                 = ₹44000
₹44000 is paid at discount of 10%
Discount is 44000 x10/100
             = ₹4400
Amount paid to creditors = 44000 -4400
                                        = ₹39600