Calculate the amount to be debited in the Realisation account on the dissolution of the partnership firm if debtors of ₹25,000, realised 90% only and ₹1,200 were recovered for bad debts written off last year.
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → ₹25,000
On dissolution, debtors are transferred to the debit of the Realisation Account at their book value. The amount realised (90% = ₹22,500) and the bad debts recovered (₹1,200) are cash received, which goes to the credit side.
Amount debited = book value of debtors = ₹25,000
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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