On dissolution of a firm, debtors were ₹17,000. Out of these ₹500 became bad and the rest realised 60%. Which account will be debited and by how much amount on realisation?

Cash Account by ₹9,900

The correct answer is option 3- Cash Account by ₹9,900.

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

Amount realised from debtors will be 60%
So, realised amount = 16,500 x 60/100
                                = 9,900

The journal entry for this-
Cash A/c Dr.  9,900
       To Realisation A/c 9,900