Investments valued ₹5,00,000 were not shown in the books. One of the creditors took over these investments in full satisfaction of his debt of ₹7,20,000. How much amount will be deducted from creditors?

₹720000 ₹500000 ₹220000 None of the above

₹720000

₹7,20,000 will be deducted from creditors as they are reduced by this amount.