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 realisation of investments at 150%.

Bank A/c   Dr.          ₹60,000
   To Realisation A/c                ₹60,000
(Realisation of investments)

The correct answer is option 4-
Bank A/c   Dr.          ₹60,000
   To Realisation A/c                ₹60,000
(Realisation of investments)

Book value= 40,000
Realised value = 40000 x 150/100
                      = ₹60,000

Journal entry will be:
Bank A/c   Dr.          ₹60,000
   To Realisation A/c                ₹60,000
(Realisation of investments)

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