X & Y are partners sharing profits and losses in the ratio 4:3. They decide to dissolve the firm. On the date of dissolution following information is available-
X's Capital = ₹125030
Y's Capital = ₹2070
Creditors = ₹23150
Cash = ₹4250.
Remaining assets realised at ₹124910 and the dissolution expenses are ₹1860. Both Partners are solvent.

Pass the journal entry for the realisation of assets.

Cash A/c  Dr.   ₹124910
    To Realisation A/c  ₹124910

The correct answer is option 1 i.e.
Cash A/c  Dr.   ₹124910
    To Realisation A/c  ₹124910

Remaining assets realised at ₹124910. So Cash come to firm so cash account is debited and relaisation account is credited with the amount of realisation.