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.
Total debtors = ₹2,50,000
₹10,000 are bad debts
Remaining debtors = 2,50,000 -10,000
= ₹2,40,000
Remaining debtors are realised 70%
Realised Amount = 2,40,000 x 70/100
= ₹1,68,000
Journal entry on realisation of remaining amount is-
Bank A/c Dr. ₹1,68,000
To Realisation A/c ₹1,68,000
So, bank account is debited with ₹1,68,000.