On Dissolution of a firm, debtors were ₹17,000; of these, ₹500 became bad and the rest realised 60%. Which account will be debited and with how much amount?
Answer & explanation
Correct answer: option 3
The correct answer is Option (3) → Cash A/c by ₹9,900
Debtors = ₹17,000
Less: bad debts = ₹500
Debtors to be realised = ₹16,500
Amount realised = ₹16,500 × 60/100 = ₹9,900
Entry: Cash A/c Dr. ₹9,900 To Realisation A/c ₹9,900. The debtors were already transferred to the Realisation Account at book value, so only the cash actually received is recorded now.
NCERT (2026-27 edition):
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