On Dissolution of a firm, debtors were ₹17,000 of these ₹500 become bad and rest realised at 60%. Which account will be debited and with how much amount?

Cash A/c by â‚¹9,900

The correct answer is Option (3) - Cash A/c by â‚¹9,900.

Debtors = ₹17,000
Bad debts = ₹500
Remaining debtors = 17,000 -500
                           = ₹16,500

Remaining debtors of  ₹16,500 realised at 60%.
Realised amount  = 16,500 x 60/100
                          = ₹9,900

Journal entry for the realisation amount-
Cash A/c Dr.           ₹9,900
    To Realisation A/c         ₹9,900

So, cash account is debited with 9,900.