On Dissolution of the partnership firm out of total debtors of ₹2,50,000, ₹10,000 became bad and the rest realised 70%. In the given case Bank A/c will be debited by:
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹1,68,000
On dissolution, the cash actually realised from an asset is debited to Bank and credited to the Realisation Account. Bad debts bring in nothing, so only the good debtors are realised.
Total debtors = ₹2,50,000
Less: Bad debts = ₹10,000
Good debtors = ₹2,40,000
Realised at 70% = ₹2,40,000 × 70/100 = ₹1,68,000
Bank A/c Dr. ₹1,68,000
To Realisation A/c ₹1,68,000
NCERT (2026-27 edition):
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