At the time of dissolution of partnership firm, debtors were realised at a discount of 5% (Book value was ₹48,000). Amount realised at the time of dissolution was-
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹45,600
Debtors realised at a discount of 5%:
Discount = 5% of ₹48,000 = ₹2,400
Amount realised = ₹48,000 − ₹2,400 = ₹45,600
The ₹45,600 is credited to the Realisation Account and debited to Bank.