A and B are partners in a partnership firm sharing profits in the ratio of 3:2. They decided to dissolve the partnership firm. All assets other than cash and liabilities have been transferred to Realisation Account. Following information is available:

Book value of stock = ₹4,00,000
Debtors= ₹2,64,000
Provision of doubtful debts= ₹24,000
Book debts proved bad= ₹48,000
Building= ₹5,00,000
Machinery= ₹6,00,000
Investments= ₹40,000

Pass the journal entry for the remaining stock which is sold at a profit of 30% on cost, if A took 50% of the stock at a discount of 20%.

Bank A/c                  Dr.  ₹2,60,000
   To Realisation A/c                     ₹2,60,000
(Stock sold)

The correct answer is option 3-
Bank A/c                  Dr.  ₹2,60,000
   To Realisation A/c                     ₹2,60,000
(Stock sold)

Book value of stock= ₹4,00,000
50%,= ₹2,00,000
Discount = 200000 x 20/100
             = 40,000

Taken by A= 2,00,000 - 40,000
                = ₹1,60,000

Remaining stock= ₹2,00,000
Profit = 200000 x 30/100
         = ₹60,000

Total amount = 2,00,000 + 60,000
                     = ₹2,60,000

So journal entry is-
Bank A/c                  Dr.  ₹2,60,000
   To Realisation A/c                     ₹2,60,000
(Stock sold)

Bank account is debited with the increase in cash balance of the firm and realisation account is credited as stock has been already transferred to realisation account.