Calculate the amount to be debited on the dissolution of partnership firm if Debtors of ₹25,000, realised 90% only and ₹1,200 were recovered for bad debts written off last year.
Answer & explanation
Correct answer: option 4
The correct answer is Option (4) → ₹23,700
Both amounts are received in cash, so Bank Account is debited (and Realisation Account credited) with the total:
Debtors realised = 90% of ₹25,000 = ₹22,500
Bad debts recovered = ₹1,200
Amount debited to Bank = ₹22,500 + ₹1,200 = ₹23,700
NCERT (2026-27 edition):
NCERT (2026-27 edition):
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